Tax Deduction Update: Government is making a new plan regarding tax, preparing for big changes in TDS!

Tax Deduction: The government is engaged in the exercise of linking the tax deduction (TDS) made at the source of a person’s income with the tax collection at source (TCS) for its payment.

A senior officer has given this information. Generally, TCS is a tax charged by a seller at the time of sale of goods or services. At the same time, TDS is the tax imposed by the government.

20 percent to be implemented

The idea behind linking TCS with TDS is that the cash flow of individual taxpayers should not be affected. This effort of the government has come to the fore at a time when the system of 20 percent TCS is going to be implemented from July 1 on spending more than a certain limit abroad.

Economic advisor gave information

Chief Economic Advisor (CEO) Ananth Nageswaran has said that the government has excluded transactions up to Rs 7 lakh from TCS, which will provide relief to small taxpayers. This means that most transactions will not come under the purview of 20 per cent TCS.

Will be seen as TDS

Nageswaran has defended this move saying that the government is trying to link your TDS with TCS in such a way that if you have given TCS, it should appear as less TDS. The purpose of this whole exercise is that your cash flow should not be affected.

Relief will come from the new system

He said in a program of Industry Board CII on Thursday that taxpayers who are troubled by the mismatch between TCS and TDS will get relief from the new system.