Important changes w.e.f. 01.06.2015 under Income Tax Laws.

Important changes w.e.f. 01.06.2015 under Income Tax Laws.

1. Now Bank/Cooperative bank and post office RD recurring deposits interest, if more than 10000/- per year will be liable to TDS w.e.f. 1-6-2015. If PAN number is not given then TDS will be 20%.

2. Now w.e.f. 1-6-2015 any transaction in real estate including agricultural land shall be required to be made through account payee cheque or rtgs if it is of Rs. 20000/- or more, only such farmers are free from this if both of them have agricultural income only and not any other income chargeable to income tax i.e. both of them should not have any income like interest/rent/salary etc. even of one rupee, i.e. he should not have even income of one rupee other than only agricultural income. If transaction is done in cash then penalty of an amount equal to such cash transaction will be imposed on seller who accepts cash or refund of advance is made in cash by the seller of property.

3. Transactions of purchase by consumer of fridge, TV, Car, jewellery can be made in cash or cheque but if more than Rs. 1 Lakh then PAN number of buyer will have to be quoted. (In case of jewellery if more than Rs. 5 Lakh and even a cash transaction of any amount therein, then TCS @1% will have to be made.) CBDT has not yet made any circular or rule regarding quoting of PAN for transaction of movable properties exceeding Rs. 1 Lakh.

4. w.e.f. 1-6-2015 in case of payment of transport freight at a single transaction of more than Rs. 30000/- or of more than Rs. 75000/- in a year then TDS will have to be deducted @ 1% and in case of recipient being firm or a company then TDS @ 2% will have to be made. if the recipient own 10 or less goods carriage he can give a declaration to this effect then TDS will not be deducted even if payment exceeds the threshold of Rs.30000 / Rs.75000. Till now Income tax rules have not been notified for 2015 therefore format of declaration to be obtained in case of 10 or less truck has not also been notified yet now therefore until specified format comes self declaration from truck owner can be obtained.

5. w.e.f. 1-6-15 if any payment is made by any person to a non-resident, (not being a company) or to a foreign company any sum whether or not chargeable to income tax shall furnish form No. 15CA & 15CB. Earlier only income chargeable to income tax in India had to be reported only but now all payments are covered. If such information is not furnished or the information furnished is inaccurate then U/s 271-I penalty of Rs. 1 Lakh may be imposed.

6. Till 31-5-2015 Income tax department has no power to process TDS return U/s 200A to levy TDS late fee U/s 234E but w.e.f. 1-6-2015 as per Sec. 200A income tax department can levy late fee U/s 234E @ Rs. 200/- per day on delayed filing of TDS return. so if any late fee is levied before 1-6-2015 appeal can be filed for this or rectification application U/s 154 can be filed to get it cancelled. Now if due to mistake any late fee U/s 234E is paid then refund will be granted of such excess late fee.

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