Merchants’ Chamber of Commerce & Industry organised an Interactive Session on “TDS / TCS for compliances”, Today at Conference Hall of the Chamber.
The Session was addressed by Shri Raghuveer Madanappa, IRS, Commissioner of, Income Tax (TDS), Kolkata, Ministry of Finance, Govt. of India.
The Session was attended by Shri Mangtinlen Haokip, IRS, Additional Commissioner, TDS, Range 1 & 2, Kolkata, Shri Prabhakar Prakash Ranjan, IRS, Additional Commissioner, TDS, Range 3, Kolkata , Shri Sanjay Kumar Yadav, IRS, Joint Commissioner of Income Tax, Md. Arshad, IRS, Joint Commissioner of Income Tax, Shri Kumar Sambhav, IRS, Deputy Commissioner of Income Tax, Shri Rajiv Kumar Pandey, IRS, Deputy Commissioner of Income Tax, Shri Debjit Chatterjee, Income Tax Officer, HQRS TDS Kolkata, Shri Sartarshi Sarkar, ITO (Tech.), TDS Kolkata to CIT(TDS), Kolkata.
Shri Raghuveer Madanappa, IRS, Commissioner of Income Tax (TDS), Kolkata, Ministry of Finance, Govt. of India mentioned that the CCIT(TDS), Kolkata Region has achieved remarkable growth in TDS collections, with collections almost doubling over the past 5 years, including
- TDS collections increased from ₹16,143.26 cr (FY20-21) to ₹29,330.55 cr (FY23-24)
- Consistent achievement of targets, with a peak of 111.01% in FY23-24
- Steady growth in targets: ₹14,656.94 cr (FY20-21) to ₹26,422 cr (FY23-24)
However, the region has witnessed 4% loss.
The disposal of CPGRAM and E-NIVARAN & OTHERS cases has improved, with faster average disposal times including,
- CPGRAM: Average disposal time reduced from 20 to 13 days
- E-NIVARAN & OTHERS: Average disposal time reduced from 18 to 12 days
- More cases received and disposed of in the current perio
The rebate u/s 87A for taxpayers filing tax returns under the New Tax Regime was increased to from Rs. 25,000 to Rs. 60,000. Thus, now the taxpayer can enjoy a tax-free income of up to Rs. 12 Lakhs.
He informed that any seller receiving over ₹10 lakh for the following goods must collect 1% TCS from the buyer at the time of payment.
List of goods:
- any wrist watch
- any art piece such as antiques, painting, sculpture
- any collectibles such as coin, stamp
- any yacht, rowing boat, canoe, helicopter
- any pair of sunglasses
- any bag such as handbag, purse
- any pair of shoes
- any sportswear and equipment such as golf kit, ski-wear
- any home theatre system
- any horse for horse racing in race clubs and horse for polo
TCS will not be applicable on LRS for education if financed through education loan. Section206C(1G) covering TCS on educational loans has been removed from April 1, 2025. Previously, the seller had to collect a TCS under section 206C(1H) on the sale of goods if the aggregate value of goods sold exceeded Rs. 50 lakhs with other conditions. This created compliance issues with section 194Q where the buyer had to deduct TDS on the purchase of goods with the same conditions. Section 206C(1H) has been removed from April 1, 2025, and the seller will not have to collect TCS on goods sold.
Commissioner of Income Tax (TDS), Kolkata shared that the amendment to Section 192(2B) simplifies tax compliance for salaried employees. From Oct 1, 2024, employers will consider any TDS or TCS deducted/collected under Chapters XVII-B/XVII-BB when calculating TDS on salary. This includes TCS on luxury goods, foreign transactions, etc., reducing administrative burden and improving cash flow.
Shri Arvind Agrawal, Chairman, Council on Direct Taxes, MCCI said that the new TDS regulations have increased exemption limits for senior citizens and small investors. Key changes include raising the TDS threshold on bank interest to ₹1,00,000 for seniors and ₹50,000 for others, and doubling the dividend income exemption. The reforms aim to simplify tax compliance, enhance liquidity, and promote formal investment.
Shri Agrawal also mentioned that for faster reconciliation and real time compliance, it is advisable to be proactive and file accurate statements and timely corrections. In case of a compliance risk, there would be severe penalties ranging from Rs. 10,000 to Rs. 1 lakh.
The Session concluded with hearty Vote of Thanks proposed by Shri Sanjay Bhattacharya, Co-Chairman, Council on Direct Taxes, MCCI.
