The Income Tax Department has recently released this form for the financial year 2025-26, which can provide taxpayers the facility of less or zero TDS deduction. By filling this form in advance, it can be ensured that additional TDS is not deducted on the income.

What is Form-13

It is often seen that banks, companies, employers and other institutions deduct TDS at the rates prescribed under the Income Tax Act- 1961, even if the total tax liability of the taxpayer is not that much. The monthly budget of many people is affected and finally they have to apply for tax refund. To save taxpayers from this hassle, the government has provided the facility of Form-13.

This is a special form available under the Income Tax Act-1961, which allows taxpayers to apply for lower or zero TDS deduction. That is, with its help, taxpayers can request in advance that TDS be deducted in the correct proportion on their income sources. This saves them from additional deduction. This form is especially useful for those who receive income from bank interest, dividends, or other sources and whose income tax liability is zero.

Who should fill it out

– Salaried employees whose total tax liability is less than the TDS deduction.

– Senior citizens, whose income comes from pension, interest or rent.

– People who are receiving income from rent, dividends or other investment sources.

– Businessmen and freelance professionals who wish to reduce TDS on their annual income.

– People whose income comes from investments but want to avoid TDS over and above the standard deduction.

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Along with this, changes have also been made in the rules of TDS deduction, which is very important to understand. The government has doubled the TDS levied on interest received by senior citizens on bank fixed deposits, which has given them great relief. With this decision of Finance Minister Nirmala Sitharaman, the income through senior citizen schemes and bank FDs will be doubled.

The government doubled the limit

The central government has doubled the limit of TDS deduction on FD interest for senior citizens. Earlier it was Rs 50 thousand, while now it has become Rs 1 lakh. Meaning now TDS will not have to be paid on earnings up to Rs 1 lakh from interest. Let us tell you that the new limit will be applicable from the next financial year 2025-26 i.e. April 1. Actually, banks offer 0.50 percent more interest to senior citizens on their FD schemes than the normal interest rate. In such a situation, their earnings will increase. At the same time, investment in popular schemes like Post Office Senior Citizen Savings Scheme is expected to increase.

How much TDS will have to be paid above the limit?

At present, if the interest received by senior citizens from bank FD is more than Rs 50,000, then the account holders have to pay TDS of 10 percent. This means that if a person earns Rs 80,000 as interest in a financial year, then he has to pay TDS of Rs 8,000. Now, from April 1, 2025, 10% TDS will have to be paid on interest earned above Rs 1 lakh.

Common man also got relief

It is known that the limit of TDS deduction on interest income for general citizens has also been increased. Finance Minister Nirmala Sitharaman said in her budget speech that the limit of TDS on interest from FD for non-senior citizens has been increased from Rs 4 thousand to Rs 50 thousand. If your annual income is less than the taxable income, then you can claim TDS in the income tax return.

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How much tax will be deducted?

According to the rules of the Income Tax Department, if your Permanent Account Number (PAN) is not linked with biometric Aadhaar, then Tax Deduction at Source (TDS) will be deducted at double the applicable rate.

The department had also issued a circular last month. It said that if those people who have less TDS deducted from their accounts link their PAN and Aadhaar by May 31, they will not need to pay more TDS. Also, no action will be taken against them.

The Income Tax Department has posted on the social media platform X, ‘If you have not linked your PAN card with Aadhaar, please link it before 31 May. This will help you avoid additional tax deduction.’

Also Read: RBI Penalty on Bank: RBI imposed a fine of Rs 2 crore on these 2 banks, details here

Warning for banks, forex dealers too

In another post, the IT department has asked institutions like banks and forex dealers to file the Statement of Financial Transactions (SFT) before May 31. Otherwise, they can be fined. Through SFT, the Income Tax Department keeps an eye on the transactions of large amounts of money of a person.

The reporting entities that are required to file SFT returns with the tax authorities include foreign exchange dealers, banks, sub-registrars, NBFCs, post offices, bond/debenture issuers, mutual fund trustees, companies paying dividends or buying back shares.

Delay in filing SFT returns can attract a penalty of up to Rs 1,000 per day. Non-filing or filing of incorrect details can also attract a separate penalty.

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The number of sellers on ONDC i.e. Open Network Digital Commerce is continuously increasing. ONDC, which was introduced like UPI for e-commerce, is gradually gaining popularity. Meanwhile, the Tax Department has clarified the conditions regarding deduction of TDS from e-commerce sellers selling on ONDC.

TDS at the rate of 1 percent

For this, CBDT i.e. Central Board of Direct Taxes issued a new circular on Thursday. In the circular, CBDT said that TDS deduction of 1 per cent on e-commerce sales will be applicable on the total amount of sales, which also includes charges and fees collected by various e-commerce operators along with the goods and services offered on ONDC.

This is why CBDT’s circular came

The Government of India is promoting ONDC. ONDC was first introduced in 2020. Its objective is to bring changes in the e-commerce sector in the same way as UPI has done in the case of digital transactions. Now ONDC’s network has started expanding. Many e-commerce platforms have been listed on ONDC. In such a situation, CBDT has now tried to clarify the situation by issuing a circular regarding tax deduction and tax liability.

TDS on all types of charges

According to CBDT guidelines, e-commerce platforms charge various charges on both the seller and buyer sides, which include packaging charges, shipping charges and convenience charges etc. According to CBDT, deduction of TDS will be applicable on all such charges. TDS will be deducted at the time of payment or credit by the seller side e-commerce operator. They will also have to file TDS return and issue a certificate to the seller.

TDS in case of return-replace

CBDT has also explained in the guidelines how tax will be deducted if a purchase is returned. CBDT says that TDS will definitely be deducted at the time of sale as usual. However, if a return situation arises, the deducted tax can be adjusted in another transaction during the same financial year. In case of replacement, no adjustment will be required.

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This clarification will be regarding consent on the option of regime election. The Central Board of Direct Taxes has also issued guidelines in this regard. The Finance Ministry has given taxpayers the option of two tax regimes for the financial year 2023-24. Taxpayers can choose one of these tax regimes. Let us tell you that the new tax slab is the default, so the salaried taxpayers who like the tax slab of the old tax regime will have to choose the old tax regime.

The Central Board of Direct Taxes has said that employers should clarify with their employees about choosing the tax regime and only then deduct TDS. Because, in the old tax regime, the facility of exemption and deduction on investment will be available as before. Whereas, the tax slabs are less in the new tax regime, but there is no exemption.

In such a situation, salaried taxpayers want to get the benefit of exemption under investment, then they will have to choose the old tax regime. If they want to avoid tax on annual income of 7 lakhs, then they will have to choose a new tax regime. Therefore, before deducting TDS, the employer is required to seek clarification from his employees on the decision of tax regime election.

Tax slabs and tax rates under the new tax regime

• Tax rate zero percent tax on earning Rs 0-3 lakh
• 5% tax on Rs 3-6 lakh
• 10% tax on Rs 6-9 lakh per annum
• 15% tax on earning Rs 9-12 lakh
• 20% tax on annual income of 12-15 lakhs
• 30% tax on 15 lakh income

ax slabs and tax rates under the old tax regime

• Zero percent tax on income up to 2.5 lakhs
• 5% tax on annual income from 2.5 lakh to 5 lakh
• 20 percent tax on earning 5 lakh to 10 lakh
• 30% tax on annual income above 10 lakhs

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In such a situation, CBDT has issued a circular regarding the modalities of TDS deduction in 2023-24, in which it has been said that from the current financial year, the new income tax regime has become the default tax regime. In such a situation, the CBDT has told the employer that he must ask his employees whether they want to opt for the new tax regime or the old tax regime. All employees will have to inform their employer at the beginning of every financial year whether they want to opt for the new tax regime or the old tax regime.

CBDT has said in its circular that it is necessary to choose the option of new income tax regime or old income tax regime because on the basis of that the employer will deduct TDS on the income of the employee.

The Central Board of Trustees has clarified that if an employee does not inform this to his employer, then the default tax regime on that employee, which is the new tax regime, will be valid and TDS will be deducted from his income on the basis of that. In such cases, the employer will have to deduct TDS under section 192 on the income of the employee as per the tax rate of the new income regime.

Presenting the general budget for 2023-24, Finance Minister Nirmala Sitharaman had announced that the new tax regime will be considered as the default tax regime from the new financial year. The tax rate in the new income tax regime is lower than the old tax regime.

But in the new tax regime, no deduction is available on home loan interest and investment. Whereas in the old income tax regime, you can get tax exemption on Mediclaim by taking exemption on investment and home loan interest.

However, salaried taxpayers will have the option to choose either the new or the old tax regime while filing income tax returns, even if they have informed the employer to choose another option. Salaried taxpayers will have the option to choose either the new or old income tax regime every year. Whereas those who get income from business or profession can change the option of tax regime from one tax regime to another only once.

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What is this circular

According to media report, the CBDT had issued the circular last week. It explains the liability of employers with respect to deduction of tax at source from salary under section 192 of the Income Tax Act, 1961 for the financial year 2022-23. As per section 192, the person responsible for making the payment of salary income must furnish to the payee a statement giving true and complete details of the perquisites or benefits in lieu of salary provided to him and the value thereof.

TDS will have to be deposited this much every month

For example, if someone’s annual income from salary is Rs.6,00,000, then the tax on the total salary including cess, according to the normal rate, becomes Rs.33,800. Calculating tax on Rs 50,000 at the average tax rate of 5.63 per cent works out to Rs 2,815. That is, TDS (TDS) of Rs 235 will have to be deducted every month on this amount.

What is the current income tax slab

Currently, there is no income tax on annual income up to Rs 2.50 lakh. 5 percent income tax has to be paid on income from Rs 2.50 lakh to Rs 5 lakh. 10 percent income tax is applicable on Rs 5 lakh to Rs 7.50 lakh. 15 per cent on annual income from Rs 7,50,001 to Rs 10 lakh, 20 per cent on annual income from Rs 10,00,001 to Rs 12.50 lakh, 25 per cent on annual income from Rs 12,50,001 to Rs 15 lakh and above Rs 15 lakh 30 percent income tax has to be paid on the income of Rs.

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The Central Board of Direct Taxes (CBDT) has issued a circular regarding TDS deduction from salary. tax) will have to be deducted. According to news agency IANS, the circular states that tax should be deducted at the average rate calculated on the basis of the rates applicable for the current financial year on the income (income) from the estimated salary of the recipient for that year.

Circular explains the liability of employers

According to the news, the CBDT had issued the circular last week. It explains the liability of employers with respect to deduction of tax at source from salary under section 192 of the Income Tax Act, 1961 for the financial year 2022-23. As per section 192, the person responsible for making the payment of salary income must furnish to the payee a statement giving true and complete details of the perquisite or benefit in lieu of salary provided to him and the value thereof.

How much average TDS will have to be deposited every month

For example, if someone’s annual income from salary is Rs.6,00,000, then the tax on the total salary including cess, according to the normal rate, becomes Rs.33,800. Calculating tax on Rs 50,000 as per the average tax rate of 5.63 percent, it becomes Rs 2815. That is, TDS (TDS) of Rs 235 will have to be deducted every month on this amount.

Current income tax slabs

Currently, there is no income tax on annual income up to Rs 2.50 lakh. 5 percent income tax has to be paid on income from Rs 2.50 lakh to Rs 5 lakh. 10 percent income tax is applicable on Rs 5 lakh to Rs 7.50 lakh. 15 per cent on annual income from Rs 7,50,001 to Rs 10 lakh, 20 per cent on annual income from Rs 10,00,001 to Rs 12.50 lakh, 25 per cent on annual income from Rs 12,50,001 to Rs 15 lakh and above Rs 15 lakh 30 percent income tax has to be paid on the income of Rs.

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The season of filing Income Tax Return is going on in the country and its deadline is 31st July. If any individual does not file his income tax return by July 31, then he can pay a fine later. For the financial year 21-22, ITR has to be filed by 31 July 2022. Now one document plays a very important role in filing income tax return and that is Form-16. This document is very important and few people are not aware of it. If you also do not know about the features of Form-16, then this article is for you.

Why Form-16 is necessary?

Form-16 is a very important document while filing income tax return. Form-16 is issued on behalf of your company. In this Form-16, apart from the salary taken through you, deduction, tax deducted, allowance, there are many other information, which comes in handy when you are filing income tax return.

Form-16 has two parts

With the help of this form, you can reconcile your income tax related data. If the data being filed in the Income Tax Return and the data filed in Form-16 are different, then you may face problems later on. Form-16 consists of two parts. One part is Part-A and the other is Part-B.

What information is in Part-A

• Employee name and address
• Name and address of employer
• Employer’s PAN number and TAN number
• Employee’s PAN Number
• assessment year
• TDS Deduction Details
• Job Term Description

What information is in Part-B

• Salary and chargeable income
• Gross Income (Salary) + Other Income
• Deduction under section 80C, 80CCC, 80CCD
• Deduction under section 80D, 80E, 80G and other
• sum of eligible deductions

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