NEW RULE FROM 01.10.24 | SALARY पर अब नहीं कटेगा TAX | किसे होगा फायदा और कैसे

Summary

This informative video from the GST platform discusses significant changes in TDS regulations for salaried individuals effective October 1, 2024. It highlights how TDS on salaries will drastically decrease, benefiting the salaried class. The amendment allows for the credit of TCS (Tax Collected at Source) against TDS calculations, easing cash flow issues. Practical examples illustrate the new provisions, ensuring viewers understand the implications. The video encourages viewers to stay updated with changes and follow the channel for more practical insights related to the 2024 budget.

Takeaways

• 😀 Significant changes to TDS provisions for salaried individuals will take effect from October 1, 2024.
• 💰 The TDS on salaries for the salaried class will now be minimal, reducing their overall tax burden.
• 🔄 Credit for Tax Collected at Source (TCS) will now be allowed in the TDS calculation for salaries.
• 📊 A practical example illustrates how TDS liability is calculated when additional income, such as interest, is considered.
• 💡 If an individual's salary is ₹50 lakh and they earn an additional ₹5 lakh from interest, the total income considered for TDS will be ₹55 lakh.
• 📉 TDS liability can be significantly reduced by considering TCS credits, improving cash flow for salaried individuals.
• 🚗 An example of purchasing a vehicle shows how TCS collected can offset TDS obligations when calculating tax liabilities.
• 🤝 The government has recognized the need for these adjustments based on taxpayer representations and concerns.
• 📉 The changes aim to simplify tax compliance and provide relief to salaried individuals facing cash flow issues.
• 🔔 Stay updated with the GST platform for more important practical videos on budget changes and taxation.

Q & A

What major change is being introduced for salaried individuals starting October 1, 2024?

Starting October 1, 2024, salaried individuals will experience a significant reduction in the Tax Deducted at Source (TDS) on their salaries due to the amendment in tax provisions.

How will TCS credits impact the TDS calculation for salaried employees?

With the new amendment, credits for Tax Collected at Source (TCS) will now be allowed when calculating TDS for salaried individuals, which was not the case previously.

Can you explain the example used in the video regarding salary and interest income?

In the example, an individual with a salary of ₹50 lakh and ₹5 lakh interest income from fixed deposits would have their TDS calculated on ₹55 lakh. The TCS credit will now reduce their effective TDS liability.

What was the issue with TCS credits before this amendment?

Previously, TCS credits were not considered during TDS calculations, leading to higher TDS liabilities for salaried individuals without any credit for TCS already deducted on their expenditures.

Why did the government decide to allow TCS credits for TDS calculation?

The government recognized that allowing TCS credits would help alleviate cash flow issues for salaried employees by reducing their overall TDS liabilities.

What types of expenses will now be eligible for TCS credits?

Expenses such as purchasing vehicles, where TCS is collected by the dealer, will now be eligible for TCS credits against TDS liabilities.

What should employees do to claim their TCS credits?

Employees can claim their TCS credits when filing their income tax returns, which will help them adjust their tax liability and potentially receive refunds.

How does this change benefit employees financially?

By allowing TCS credits, employees can reduce their TDS liability, which improves their cash flow, as less money will be withheld from their salaries.

What are the implications of these changes for tax compliance?

The changes will make tax compliance easier for salaried individuals by providing them with credits for taxes already paid, thus simplifying their overall tax obligations.

How can viewers stay informed about further changes in tax provisions?

Viewers can subscribe to the GST platform channel and enable notifications to receive updates about important changes in tax provisions and practical analyses.