Applicable from 1st July 2021
Over the past few years, we have witnessed significant changes to the provisions of Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) and compliances have increased substantially.
The scope for TDS and TCS applicability has been widened with additional nature of transactions such as TDS on dividends, purchase of goods, e-commerce transactions;
TCS extended to sale of goods value beyond INR 50 lakhs, as a measure by the Government to widen the tax base, check against tax evasion, and ensure steady revenue collection at transactional level.
Parallelly, the Government is also leveraging on data analytics on taxpayerÃ¢â‚¬â„¢s data filed under different laws & forums to detect tax leakages and undertake further scrutiny on such exceptional mismatches.
These changes altogether have highlighted the need for corporates to not only deal with the changing provisions but also enable automation for better data management for voluminous transactions, drive efficiency and reconciling tax data.
- End to End process for TDS on dividends
- Adoption of section 194Q compliance and its interplay with TCS
- Reconciliation of Income /TDS as per Form 26AS and books
- Automating from Record-To-Report
Princeton Academy resources https://princetonacademy.in/resources/
Income Tax – Government of India website https://www.incometaxindia.gov.in/Pages/Deposit_TDS_TCS.aspx