Ishita Ramani
Quick Summary
Tax Deduction at Source (TDS) is a crucial compliance requirement for Income Tax Assessees. The Income Tax Law contains several sections that specify varying TDS rates, payment types, and threshold limits for TDS. The Budget 2023 has introduced some significant changes concerning TDS. These changes
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FAQ :
Budget 2023 introduced several changes, including a higher cash withdrawal limit of 3 crore for co-operative societies, the removal of the INR 10,000 minimum threshold for TDS on online gaming, and a reduction in the TDS rate from 30% to 20% on the taxable portion of EPF withdrawal in non-PAN cases.
TDS on income from online gaming is introduced under Section 194BA, with a rate of 30% applicable from 1st April 2024. It is deducted on net winnings present in the user account at the end of the financial year or at the time of withdrawal.
The TDS threshold on cash withdrawals by co-operative societies has been increased. Tax will be deducted on cash withdrawals exceeding Rs 3 crore, up from the previous limit of Rs 1 crore, effective from April 1st, 2023.
For premature EPF withdrawals where the individual fails to provide their PAN, the TDS rate has been reduced to 20% instead of the previous maximum marginal rate.
Yes, there will be no exemption from TDS on interest from listed debentures starting from April 1st, 2023. Tax must now be deducted on interest from these specified securities.
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