New TDS Section 2022

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New TDS Section 2022

  First Applicable – 1st July 2022                     

TDS to be deducted by – Business or Profession

To be deducted on – Any Prerequisite / Benefit to RESIDENT   

  Type of advantage or Prerequisites –  In Cash or In-Kind or Partially in cash and Partially in Kind.

TDS rate – 10%

No TDS – If the aggregate value would not be more than Rs 25,000 in a fiscal year.

Not applicable for individuals –                              

If the Business turnover is not more than Rs 1

Crore.                                                                                                                                                                                                   

If the turnover of profession would not be more than Rs 50 lakh

TCS on tour operator

  • New sub-section (1G) to Section 206C has been introduced in the Budget 2020 which provides for TCS on sale of Overseas Tour Programme Package.
  • As per this provision, every Seller of an Overseas Tour Programme Package is required to Collect Tax from the Buyer of such Overseas Tour Programme Package.
  • This sub-section is applicable from 01st October, 2020.

Overseas Tour packages Programme

  • Expenses incurred on travel
  • Expenses incurred for stay
  • Expenses incurred for boarding or lodging
  • Any expenditure of similar nature or in relation there to
  • TCS provisions will be applicable in all the cases whether it is for business purpose or leisure purpose or for any other purpose.

Key note

  • It provides for collection of tax by a seller of an overseas tour programme package from a buyer, being a person purchasing such package, at the rate of 5% of the amount of the package.
  • Under the new rules governing TCS on “overseas tour packages,” a seller of an overseas tour package is required to charge the buyer TCS at the rate of 10% (if PAN/Aadhar is not available) on the total amount at the time of receiving payment for the tour package, which includes costs for travel, hotel stays, meals, and lodging.
  • There is no upper bound on the applicability of TCS. All tour operators, including those who are just starting out in business, must adhere to TCS as of the first day of operation.

New Tax System

– Starting with the new tax system. There are six tax brackets with lower rates for income up to Rs.

15 lakhs in each. 

  • The various income slabs and tax rates prevent the availability of multiple exemptions and deductions.
  • The new tax system has advantages and disadvantages.
  • The new tax plan is different from the old one in two ways:
  1. Under the new system, there are more tax brackets with reduced rates in the range of Rs. 15 lakh brackets.
  1. All tax breaks and deductions that taxpayers took advantage of under the previous system will no l onger be available under the new system.ew tax system. There are six tax brackets with lower rates for income up to Rs. 15 lakhs in each.
  • The various income slabs and tax rates prevent the availability of multiple exemptions and deductions.
  • The new tax system has advantages and disadvantages.
  • The new tax plan is different from the old one in two ways:
  1. Under the new system, there are more tax brackets with reduced rates in the range of Rs. 15 lakh brackets.
  1. All tax breaks and deductions that taxpayers took advantage of under the previous system will no l onger be available under the new system.

Government Schemes of GST

  • The government repeatedly introduces new investment programmes in the nation to raise the income and financial status of its residents.
  • Everyone, including men and women, working people, members of the business class, residents of rural and metropolitan areas, etc. can participate in these government investment programmes.
  • However, it is up to the people to examine several plans and select the one that best suits their requirements in order to maximise their cash flow.
  • The fact that using government investment programmes is risk and hassle-free is their finest perk.
  • The interested parties can choose any government plan through banks and post offices all around India.
  • The majority of these government programmes provide for tax deductions, which helps investors reduce their income taxes.
  • Therefore, it is advised that investors compare the many investment programmes provided by the government before choosing the finest one to get the most benefits.

Top 5 Government Schemes

  • Allied Pension Scheme (APY)
  • Jan Dhan Yojana under Pradhan Mantri (PMJDY)
  • Government Provident Fund (PPF)
  • The National Savings Program (NSC)
  • Samriddhi Yojana for Sukanya (SSY)

New Changes in GSTR-3B❗❗❗

  • The CBIC has included a new table 3.1.1 in which taxpayers must disclose information on supplies made through e-commerce operators (ECO), if such ECO is subject to reverse charge taxation.
  • Further CBIC has also issued a circular directing the taxpayers to file returns correctly and properly. Tables of Form GSTR-1 and Form GSTR-3B shall furnish correct and proper information of inter-state supplies and amount of ineligible/blocked ITC and reversal thereof.
  • It is possible to change GSTR-3B by inserting several amendment tables for outgoing supplies, input supplies subject to reverse charging, and ITC: since FORM GSTR-3B and FORM GSTR-1 and FORM GSTR-2B were connected.
  • Allowing negative values in GSTR-3B and transferring negative values from one tax period to the next.
  • Including distinct rows to display different ITC reversals and ensuing reclaims.
  • Simplifying the procedure for settling IGST revenues.
  • In accordance with Form GSTR-2B, the total ITC eligible and ineligible must be recorded in various fields of table 4A in Form GSTR-3B.
  • Reversals of ITC that are unchangeable and of an absolute nature must be noted in table 4(B)(1) of Form GSTR-3B.