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.

Important: Please note that the information on this page / site is provided as general information for better understanding for the user and does not constitute tax, legal, or other professional advice and must not be used as such. Please consult your professional adviser(s) if you have any questions / doubts regarding the above.

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