New Delhi. In India, the government levies many types of taxes. These include Income Tax, Goods and Services Tax (GST), LTCG, STCG, TDS and TCS. Both tax evasion and delay in it are crimes. But, in the General Budget 2024, Finance Minister Nirmala Sitharaman had announced to simplify the tax system. In this episode, the government can give a big relief on TCS (Tax Collected at Source). According to Ravi Agarwal, Chairman of the Central Board of Direct Taxes, the government can keep the delay in filing TCS out of the category of crime in the Finance Bill. At present, any delay in filing TCS comes under the purview of crime.
However, the proposed relief is being considered in the same way as was announced in the Union Budget regarding TDS.
CBDT chairman gave information
CBDT chairman Ravi Agarwal told Moneycontrol, “We can do the same with respect to TCS (decriminalising late payment). We can make the necessary amendments in the Finance Bill and we will take a decision on this soon.”
In fact, in order to reduce the tax compliance burden on taxpayers, provisions have been made in the budget to allow payment till filing of TDS return for the respective quarter, in which no criminal case will be made for delay in filing this TDS. Similarly, the industry has also demanded to extend the decriminalization clause to TCS as well.
what is TCS
Tax Deduction at Source (TDS) and Tax Collection at Source (TCS) are two methods of collecting tax. Both taxes require filing of returns. TCS means tax collected at source (tax collected from income). TCS is paid by the seller, dealer, vendor, shopkeeper. This type of tax is deducted only when the amount of payment exceeds a limit.
Tags: Budget session, FM Nirmala Sitharaman, Income tax latest news
FIRST PUBLISHED : August 1, 2024, 13:17 IST