Tarun Gupta & Associates, Chartered Accountants

changes brought in the Union Budget 2024-25 on Capital Gain Tax

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Major changes brought in the Union Budget 2024-25 on Capital Gain Tax | Tarun Gupta & Associates, Chartered Accountants "Paying Tax on Investments? Here’s What Changed in Budget 2024"

*Section 194-IB: Tax Deduction from Payment of Rent by certain Individuals/HUF*

Dear Assessee (Individuals/HUF)

If your monthly rent exceeds Rs. 50,000 per month, you must deduct 2% TDS at the time of the credit or at the time of the payment whichever is earlier (for the last month in the previous year or the last month of the tenancy if the property is vacated during the year) . The payment of TDS should be made within 30 days from the end of the month in which TDS is deducted using Challan cm statement in Form 26QC.

In case of non-deduction or delay in deduction/deposit of taxes, the tenant may have to pay a penalty along with Penal Interest for delay in deduction and deposit. In case of failure on the filing Form 26QC, It will result in a late fee of Rs 200 per day.

Let me know if you need assistance!

Best regards

*Section 194T: TDS on Payment by Partnership Firm to Partners*

Please note that, effective from April 1, 2025, payments such as Salary, Remuneration, Bonus, Commission, and Interest made to a partner by a firm, exceeding Rs. 20,000 in a financial year, will be subject to TDS at 10% under Section 194T of the Income Tax Act. Kindly ensure compliance with this new provision.

CORRECTION IN TDS STATEMENT

As per amendment in section 200(3) of the Income-tax Act vide Finance Act, (No. 2) 2024, no correction statement shall be delivered after the expiry of six years from the end of the financial year in which the statement referred to in sub-section (3) is required to be delivered. In view of the above, correction statements pertaining to Financial Year 2007-08 to 2018-19 shall be accepted only up-to 31st March 2025. Deductor/Collector and other Stakeholders may kindly take note.

An updated return (ITR U) can be filed for the AY 2022-23 (FY 2021-22) latest by March 31, 2025. This will be a final opportunity .
Note:
Additional Tax Liability of 50% Tax and Interest will arise.
Loss/refund can't be claimed.
Further revisions will not be possible.

*New Tax Clearance Certificate (TCC) Requirement for Indians Travelling abroad:* Starting from 1 October 2024
1. The Government of India has introduced new regulations requiring *All Indian citizens*, regardless of the purpose of travel (business, tourism, education, etc.), must obtain a Tax Clearance Certificate (TCC) before leaving the country. This measure aims to ensure compliance with tax obligations and prevent tax evasion.
2. The TCC serves as proof that the traveler has no outstanding tax liabilities. It ensures that all dues and returns have been filed and cleared with the Income Tax Department.
3. The certificate is valid for a specified period, usually aligning with the duration of the trip mentioned in the application.
4. Travelers who fail to obtain a TCC before leaving the country may face penalties, including fines and potential restrictions on future travel.
5. Travelers are advised to apply well in advance of their departure date to avoid delays and to ensure a smooth and hassle-free journey.

*Thanks & Regards*
*CA. Roomi Gupta*
*Partner*
*M. NO 9216216819*

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