Center relaxes TDS provisions for ST community under Income Tax Act
The Center on Friday relaxed the provisions of the Income Tax Act, 1961 regarding withholding tax (TDS) on the payment of interest by a regular bank to a member of a listed tribe (ST).
The Union Ministry of Finance stated in its decree that “no tax deduction will be made on the following payment under section 194A of the law, namely the payment in the form of interest, other than interest on securities, made by a regular bank (hereinafter the “payer”) located in a specified area to a member of Scheduled Tribe (hereinafter the “recipient”) residing in a specified area as referred to in section 10 of the Act. “
In addition, the order stipulated that the payor ensures that the receiver is a member of a List Tribe residing in a specified region and that the payment accumulates or reverts to the receiver as referred to in Article 10 (26). of the Act, during the preceding year relevant to the taxation year in which the payment is made, obtaining the necessary supporting documents to support this argument. The amount paid or the total of payments made during the previous year should not exceed twenty lakh rupees, depending on the order.
TDS provisions for S&T relaxed under the Income Tax Act
For the period from May 14, 2020 to March 31, 2021, the Union government has announced a 25% reduction in the withholding tax rate (TDS) for non-salaried specified payments. The reduction was also announced for the collection of withholding tax (TCS) for specific revenues.
According to a press release from the Central Commission for Direct Taxes (CBDT), the TDS rates of non-salaried specified payments to residents have been reduced by 25% for the period from May 14, 2020 to May 14, 2021, in order to provide more funds to the provision of taxpayers to deal with the economic situation arising from the COVID-19 pandemic.
CBDT extends deadline to link PAN to Aadhar
In a separate development, CBDT extended the deadline for notifying the income tax department of the Aadhaar number and linking the PAN with it to March 31, 2022.
CBDT said in a press release that the deadline for completing the sanction process under the law has been extended from September 30, 2021 to March 31, 2022. The deadline for the competent authority to issue an opinion and issue an order under Benami’s property ban The 1988 Transactions Act has also been extended until March 31, 2022.