CBDT clarifies about norms on TDS, TCS norms, to be in effect from 1st October
According
to income tax TDS latest updates, the Central Board of Direct Taxes (CBDT) has released an
elaborated clearance about the latest TDS and TCS standards, all set to be
applied from 1st October 2020. In this context, the CBDT has
released a circular on 29th September 2020.
Bringing
more clarity into the estimation of threshold for the 2020-2021 financial
years, the CBDT has to say that as the threshold of an amount of five lakh for
every joint Hindu family (as an e-commerce accomplice having PAN or Aadhar
card) is about the earlier year, calculation of sales amount or services or
simply the both for causing deducing as per section 194-0 of the Act is going
to be in effect from 1st of April, 2020.
This
means if the total amount of sales or services or even the both taken placed
during the year 2020-2021, which includes the time up to 30th
September 2020, for any of the individual or single joint Hindu family crosses
five lakh INR, the section 190-0 provision act will be in effect on any amount
deduced or delivered on or post 1st of October, 2020. CBDT further
adds that as the subsection of 206C section of the Act is applicable upon
receiving the sale, the provision of the subsection is not going to be
applicable on sales obtained before 15th October 2020.
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