Overview
Discover how Form 12BAA can help you save on taxes, increase your in-hand salary, and efficiently claim TDS/TCS credits.
Key Points
- New Notification: Employees can now claim TDS/TCS from non-salary incomes, increasing their net salary.
- Previous Challenges: Claiming TDS on cash withdrawals, property sales, and TCS on car purchases, foreign remittances, was complicated.
- Refund Delays: Many employees had to file ITRs to reclaim TDS, resulting in delayed refunds.
Leverage Form 12BAA
Using Form 12BAA, employees can now claim TDS credits from non-salary incomes while filing their returns. Employers will provide an updated Form 16 to simplify the process.
What to Include in Form 12BAA
Employees must share their name, address, PAN, Aadhaar, financial year, and details of TDS deductions, including the section, collector’s TIN, and amounts. Similarly, for TCS claims, the collector’s name, address, TIN, and collected amounts must be provided.
A recent amendment now allows parents/guardians to claim TCS on a minor child’s income, provided it is clubbed with the parent’s taxable income.
Changes in Tax Return Forms
Form 16 (Part B) now includes new columns for salary TDS and non-salary TDS/TCS claims.
- TDS return formats are updated to reflect adjustments filed through Form 12BAA.
Conclusion
This new process encourages financial literacy among employees, ensuring maximum tax efficiency. Stay ahead—file smart, save more, and claim every rupee that’s rightfully yours!