Big update for taxpayers! TDS filing deadline extended

TDS filing: The Central Board of Direct Taxes (CBDT) has extended the deadline for filing quarterly TDS statements in Form 26Q for the second quarter by one month to November 30.

Big update for taxpayers! TDS filing deadline extended

The Central Board of Direct Taxes (CBDT) has extended the deadline for furnishing quarterly TDS details in Form 26Q for the second quarter by one month.

The Central Board of Direct Taxes (CBDT) has extended the deadline for filing quarterly TDS statements in Form 26Q for the second quarter by one month to November 30. In a statement issued on Thursday, the CBDT said that in view of the difficulties being faced in furnishing the details of Tax Deducted at Source (TDS) in the revised and updated Form 26Q, the deadline for submission of second quarter details has been extended to November 30.

What happens in this form?

Form 26Q is used to furnish the details of the quarterly return of TDS on payments other than salary. This form contains the details of the total amount paid and tax deducted thereon during a quarter. The deadline for submitting this form for the July-September quarter of the financial year 2022-23 was to end on October 31. But now it has been extended for a month.

Apart from this, let us tell you that the Income Tax Department announced last month that if the loan waiver is given under One Time Loan Settlement, then no TDS will be levied on it. In this budget, the provision of TDS on loan waivers was introduced. But the tax department made it clear that once the loan settlement is done under the loan waiver scheme, banks will not have to pay any TDS. The same rule will be applicable in loan schemes, bonuses and rights share issues as well.

A new section 194R has been included in the Income Tax Act under the Finance Act 2022. In this, a rule has been made to deduct 10% TDS. Banks had expressed their objection regarding how this rule of TDS would be applicable to loan waivers. Banks had objected to the implementation of TDS in one-time settlement of loans and sought relief from the tax department on this front. The government has given a provision of section 194R to prevent tax evasion. For example, an electronics company gives LCC television as a gift to the channel partner who fulfills the business target.

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