CBDT notifies on party wise break up of TCS



Quick Summary
The Central Board of Direct Taxes (CBDT) has issued new rules amending the Income-tax Rules, 1962, concerning the party-wise breakdown of Tax Collected at Source (TCS). These amendments, which come into effect from October 1, 2020, introduce specific requirements for furnishing particulars of amounts received or debited where tax was not collected. This includes details related to authorised dealers and sellers of overseas tour programs.

MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the 24th July, 2020
INCOME-TAX

G.S.R. 464(E). In exercise of the powers conferred by section 197 and 206C read with section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:-

1. Short title and commencement.––

(1) These rules may be called the Income-tax ( 17th Amendment) Rules, 2020.
(2) Save as otherwise provided in these rules, they shall come into force with effect from the 1st day of October, 2020.

2. In the Income-tax Rules, 1962 (hereinafter referred to as the principal rules), in rule 31AA, in sub-rule (4), after clause (v), the following clauses shall be inserted namely:-

“(vi) furnish particulars of amount received or debited on which tax was not collected,-

(a) by the authorised dealer from the buyer under the first proviso to sub-section (1G) of section 206C;
(b) by the authorised dealer under fourth proviso to sub-section (1G) of section 206C; and
(c) by the authorised dealer or seller of an overseas tour program from the buyer under clause (i) or clause (ii) of the fifth proviso of sub-section (1G) of section 206C or in view of any notification issued under clause (ii) of the fifth proviso of sub-section (1G) of section 206C.

To view / download the complete notification, find the enclosed file

FAQ :

The notification introduces amendments to the Income-tax Rules, 1962, to provide a party-wise breakdown of Tax Collected at Source (TCS).

These rules, referred to as the Income-tax (17th Amendment) Rules, 2020, come into force from October 1, 2020.

Particulars of amounts received or debited on which tax was not collected, specifically by authorised dealers and sellers of overseas tour programs, need to be furnished.

Authorised dealers and sellers of overseas tour programs are responsible for furnishing the required particulars.

These rules are made in exercise of powers conferred by sections 197 and 206C read with section 295 of the Income-tax Act, 1961.




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