Form 12BAA To Reduce TDS From Salary: All About the New Form That Will Help Salaried Employees To Cut Tax Deduction From Salaries
Form 12BAA allows salaried employees to report TDS and TCS from various income sources, enabling accurate adjustments and reducing excess TDS deductions, thereby improving cash flow and disposable income.
Mumbai, October 18: The Central Board of Direct Taxes (CBDT) has introduced a new form, Form 12BAA, to help employees manage their Tax Deducted at Source (TDS) more effectively. This form allows employees to report tax deductions from income sources other than their salaries as part of the Budget 2024 announcement. Employees can adjust these deductions against their salary TDS by using Form 12BAA, making it easier to track and manage their taxes.
According to the PIB press release dated October 17, 2024, "Vide CBDT Notification No. 112/2024 dated 15.10.2024, the Income-tax Rules, 1962 (‘the Rules’) have been amended, introducing Form No. 12BAA as the prescribed statement of particulars required under sub-section (2B) of Section 192 of the Act. Employees must provide these particulars to their employers, who are responsible for making payments under sub-section (1) of Section 192. The employer, in turn, shall deduct TDS on salary after taking into account the furnished particulars." What Is Form 26AS? All About The Important Document For Income Tax Return Filing That Taxpayers Should Know.
How Form 12BAA Helps Employees to Lower TDS Deductions from Salary
The Central Board of Direct Taxes (CBDT) has launched a new form that enables employees to report Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) from other income streams. This initiative addresses a common issue where employers fail to consider these taxes when calculating TDS on salaries. ITR Filing for FY 2021–22 (AY 2022–23): Penalties And Loss Of Benefits If You Miss Income Tax Return Deadline.
Previously, deductions relied solely on employee declarations regarding investments and expenses. Now, with the introduction of this form, employees can provide details on TDS and TCS from different sources, leading to a reduction in the TDS deducted from their salaries. This adjustment is designed to enhance employees' cash flow and increase their disposable income.
This change aims to improve employees' cash flow and enhance their disposable income. The new regulation took effect on October 1, 2024, with the form being officially notified on October 15, 2024.
(The above story first appeared on LatestLY on Oct 18, 2024 03:07 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).