CBDT of India’s most recent official tax (income tax + TDS) updates
We have provided comprehensive notifications regarding Income Tax and TDS provisions as per official government laws. For your convenience, we have included all of the most recent updates in Income Tax and TDS, news, amendments, and circulars from the government portal.
Introduce of Income Tax
The income tax is the tax levied by the government on an individual’s earnings in the previous year. Income tax is levied as a cost for utilising and maintaining government services. It is the central government’s primary source of revenue. The primary goal of collecting income tax is to allow the government to use the funds raised to fund the construction of buildings, roads, and other infrastructure and development services. The central government collects income tax and distributes it to the state governments.
The Central Board of Direct Tax (CBDT) is in charge of income tax, which is governed by the Income Tax Act of 1961. According to the Indian tax system, there are six sources of income.Salary income, business or profession income, capital gains income, other sources of income, house property income, and lottery, horse race, etc.
Different tax rates apply to different types of income. The government also provides some income tax deductions. After deducting such deductions, an individual’s taxable income can be calculated.
The government levies income tax on individuals based on their earnings. It is assessed using a slab system. In India, there are two income tax slab systems in operation: the old system and the new system. With the annual Budget for the fiscal year 2020-2021, the new IT slab system was introduced.The government has given assessors the option of choosing between slab systems. Individual assessees can file an income tax return online using forms ITR-1, ITR-2, ITR-3, ITR-4, ITR-5, and ITR-7, depending on their source of income. Assesses earning less than the tax slabs can also file returns. Noncompliance with Income Tax provisions can result in severe penalties, imprisonment, or both.
TDS (Tax Deducted at Source) in India
It’s a type of direct tax. It is levied by the bank on income, dividends, asset sales, rents, and interest payments. The Central Board of Direct Tax (CBDT) manages it, and the Income Tax Act of 1961 governs it. TDS returns must be filed by assessors every quarter.
The tax is imposed so that the burden of tax to be paid by assesses at the end of the year is reduced infractions each month and the government can earn some revenue ahead of time. Different tax rates apply to different types of transactions. TDS is a type of advance taxation. Assessors can file TDS returns electronically.
Sections 194IA, 194IB, and 194IC of the Income Tax Act of 1961 govern TDS on asset sales, while Section 302 governs TDS on dividends. If the tax deducted by the employer exceeds the actual liabilities, the employer is entitled to a refund. Noncompliance with TDS provisions can result in fines, imprisonment, or both. TDS collection ensures that there is no tax evasion by any individual because the employer is responsible for deducting the tax and tax evasion is not even possible. The TDS statement is reflected in Form 26AS of the Income Tax Act of 1961 and can be claimed in it.