CBDT announces new Income Tax and TDS rules

CBDT announces new Income Tax and TDS rules

The circular explains all the provisions under varied segments for 2021-2022

The Central Board of Direct Taxes (CBDT) has released a circular regarding the Tax Deducted at Source (TDS) and the income tax deduction on salaries for the Financial Year 2021-22, under the 'Salaries' head.

It also explains the related provisions of the Sections and Rules under the Income Tax Act, 1961 and Income Tax Rules, 1962.

CBDT had, last year, issued a circular dated 3 December 2020, wherein the rates of deduction of income tax from the payment of income during the Financial Year 2020-21 were explained.

As per the IT Act, any person responsible for paying any income chargeable under the 'Salaries' head shall, at the time of payment, deduct income-tax on the amount payable. It would be at the average rate of the tax computed on the basis of the rates in force for the financial year.

The Act also provides that a person responsible for paying any income would have to furnish details of the person to whom the amount of payment was being made. A statement providing complete particulars would be a prerequisite.