New rules for tax deducted at supply (TDS) have been launched by the Department of Post if the mixture withdrawal from all submit workplace schemes is above Rs 20 lakh by buyers which additionally entails PPF withdrawals.
As per Section 194N of Income Tax Act 1961, TDS is deducted when an investor has not filed earnings tax returns (ITR) for the earlier three evaluation years and it has been relevant from July 1, final yr.
Here’s a fast take a look at the new TDS rules:
1) A 2 % TDS will be deducted from the account after the money withdrawal is greater than 20 lakh however lower than Rs 1 crore. Also, 5% TDS will be deducted if the quantity exceeds Rs 1 crore.
2) Also if the money withdrawal is greater than Rs 1 crore, the earnings tax that can be given stands at 2% of the quantity above Rs 1 crore.
3) However, these rules are usually not used for now. But the Center for Excellence in Postal Technology (CEPT), the know-how resolution supplier to submit workplaces, has taken all the particulars of such depositors from April 1, 2020, to December 31, 2020.
4) CEPT is meant to give all the particulars concerning the depositors to the involved Circle/CBS CPCs. This contains account, PAN quantity and the TDS quantity to be deducted.
5) Incharge, CPC(CBS) of the circle will ship in all the particulars to the respective Post workplace and take up for deduction of TDS
6) The Post Office of the depositor will deduct TDS and the account holder will be knowledgeable in writing.
7) A voucher will be made for the TDS quantity and it’ll be signed by the involved Postmaster after which it can be forwarded to HO/SBCO together with different SB vouchers.
8) Also, the involved postmaster will be accountable for the deduction of TDS as per rules.
9) Non-deduction of TDS could entice restoration/penalty.
