Quick Summary
Circular No. 8/2020 F. No. 370133/5/2020-TPL Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes (TPL Division) Room No. 147B-II, North Block, New Delhi Dated 13th April, 2020 Subject: Clarification regarding short deduction of TDS/TCS due to increase in rates of surcharge by Finance (No.2) Act, 2019-reg. The Finance (No.2) Bil1,2019 was tabled in Lok Sabha on 5th July, 2019 which was passed by both the houses of Parliament and became Fina
Daily Limit Reached
You have reached your daily limit of 2 Free News
Subscribe to CCI PRO for unlimited access
Why Upgrade to CCI PRO?
- No Ads
- WhatsApp Community
- Daily E-Newsletter
- Unlimited News Access
- Profile Visitors
- Link Social Profiles
- Featured Job Posts
- Pro Badge
- Expert GST Guidance
- Unlimited Forum Replies
- Download Content in PDF
1 Year PLAN
1999
(Excl. of GST ₹359)
2 Years PLAN
3499
(Excl. of GST ₹629)
BEST VALUE
3 Years PLAN
4999
(Excl. of GST ₹899)
View all CCI PRO benefits
Already a PRO member? Login here for an ad-free experience. 07941056694
FAQ :
The circular clarifies the rules for short deduction of TDS/TCS when surcharge rates were increased by the Finance (No.2) Act, 2019, to prevent deductors/collectors from being held liable for default in certain circumstances.
The enhanced surcharge rates, as provided by the Finance (No.2) Act, 2019, were applicable from April 2019 for the previous year 2019-20.
A deductor/collector will not be considered in default if the transaction was completed and full payment made by 5th July 2019, TDS/TCS was deducted at rates in force before the Act, the tax was deposited on time, and the TDS/TCS statement was filed by the due date.
If short deduction/collection occurred after 5th July 2019, interest for the delay in deduction/collection will not be levied, provided the transaction was made subsequently.
No, the deductee/payee is still required to pay the proper tax, including the enhanced surcharge, through advance tax or self-assessment tax and file their income tax return accordingly.
CAclubindia
