TDS Return filing new changes from Jan 2025
- Temporary Suspension of Correction Statement: The correction statement for Quarter 4 (24Q) of Financial Year 2024-25 has been temporarily suspended from December 27, 2024, to January 31, 2025. This facility will resume on February 1, 2025.
- Time Limit for Correction Statements: As per an amendment to the Income Tax Act, you can no longer file correction statements for TDS after six years from the end of the financial year in which the original statement was due. This means that corrections for Financial Years 2017-18 and 2018-19 can only be filed up to March 31, 2025.
- PAN Verification Before TDS Deduction: Before deducting TDS, especially for new users, verify their PAN by entering their PAN and date of birth to ensure it’s not inoperative. If the PAN is inoperative, TDS must be deducted at a higher rate of 20%.
- New Utility for Filing TDS Returns: To avoid errors and ensure you are using the latest version, download the new RPU version 5.4 utility for filing TDS returns from the tin-nsdl.com website. This is important for all forms like 24Q, 26Q, 27Q, and 27EQ.
- Form 13 TDS Lower Rate Certificate : Taxpayer can file application in Form 13 for lower or nil deduction certificate under section 197 of the Income Tax Act 1961, for section 194Q and sub-section (1H) of section 206C starting from October 1, 2024.
- Tds Certificate Form 16 : A new utility version 1.5 has been rolled out for generation of Form-16 Part-B .Please download the latest utility version for Form-16 Part-B requests
- The due date for filing the TDS return for Q3 (October to December 2024) of the financial year 2024-25 is indeed 31st January 202
- TDS Rate Revision from 01.10.2024
Certainly, here is the revised TDS rate chart for Assessment Year 2025-26, effective from October 1, 2024, presented in a tabular format comparing the rates before and after the revision:
TDS Rate Chart for AY 2025-26
| Section | Particulars | TDS Rate (in %) Before 01.10.2024 | TDS Rate (in %) After 01.10.2024 |
|---|---|---|---|
| 194DA | Payment in respect of life insurance policy | 5% | 2% |
| 194G | Commission, etc., on the sale of lottery tickets | 5% | 2% |
| 194H | Payment of commission or brokerage | 5% | 2% |
| 194-IB | Payment of rent by certain individuals or HUF | 5% | 2% |
| 194M | Payment of certain sums by certain individuals or Hindu undivided family | 5% | 2% |
| 194O | Payment of certain sums by e-commerce operator to e-commerce participant | 1% | 0.1% |
| 194F | Payment on account of repurchase of units by Mutual Fund or Unit Trust of India | 20% | Omitted |
Key changes:
- The TDS rates on several payments, including life insurance policy (Section 194DA), commission on lottery tickets (Section 194G), brokerage (Section 194H), rent (Section 194-IB), payments by individuals or HUFs (Section 194M), and payments by e-commerce operators (Section 194O) have been reduced from 5% to 2%.
- Section 194F, which dealt with TDS on repurchase of units by mutual funds, has been omitted effective October 1, 2024.