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TDS
The income tax department on Monday said "banking company" governed by the provisions of the Banking Regulation Act, 1949, will deduct TDS on interest income beyond the prescribed threshold. Under the Income Tax law, the tax is to be deducted at source if the interest income from bank/post office deposits exceeds Rs 50,000 for ordinary citizens, or Rs 1 lakh for senior citizens, in a financial year. In a post on X, the income tax department said under Section 402 of the new Income Tax Act, 2025, a "banking company" refers to a company to which the provisions of the Banking Regulation Act, 1949, apply. As per the Income-tax Act, 1961, the scope of "banking company" included not only banking companies to which the Banking Regulation Act, 1949, applies, but also "any bank or banking institution referred to in section 51 of that Act. The income tax department said by virtue of the extant Section 51 of the Banking Regulation Act, 1949, such banks and banking institutions fall within the
The Supreme Court on Wednesday dismissed a petition that had alleged the absence of a mechanism to make people aware of their obligation about the tax deducted at source (TDS) while purchasing property valued at more than Rs 50 lakh. A bench of Justices Vikram Nath and Sandeep Mehta refused to entertain the plea that had claimed that honest purchasers acting in good faith were later exposed to penalty and interest, despite having no intention to default. "Dismissed," the bench ordered. The petitioner, who appeared in the court in person, told the bench that the plea relates to the issue concerning the enforcement of a provision of the Income Tax Act in property transactions exceeding Rs 50 lakh. "Under the present framework, the entire TDS obligation or liability is placed solely on the buyer on the implicit assumption that every property purchaser, regardless of the background and expertise, possesses a working knowledge of the income-tax law," the petitioner said. He claimed tha
Retirement fund body EPFO has simplified the process of transferring PF accounts on job change by removing the requirement of approval from an employer in the majority of the cases, an official statement said on Friday. Till now, the transfer of Provident Fund (PF) accumulations involved two Employees' Provident Fund (EPF) offices-- the Source Office, from which the PF amount was transferred, and the Destination Office, where the amount is finally credited, the Ministry of Labour & Employment said. Now, with an aim to further simplify the process, EPFO has removed the requirement of approval of all transfer claims at the Destination Office by launching a revamped form 13 software functionality. Henceforth, once a transfer claim is approved at the transferor (Source) office, the previous account will automatically transferred to the member's present account at the transferee (Destination) office instantly, furthering the aim of ease of living for members of EPFO. This revamped ...
Budget proposals for income tax cuts and other tax changes will help banks to mobilise Rs 40,000-45,000 crore additional deposits, Financial Services Secretary M Nagaraju on Monday said. The Union Budget 2025 has proposed an increase in the tax deduction at source (TDS) threshold on interest earned from fixed deposits for general (non-senior) citizens from the current Rs 40,000 to Rs 50,000 per financial year. The TDS threshold for fixed deposit interest income earned by senior citizens will go up from Rs 50,000 to Rs 1 lakh from FY2025-26, he said. "We see over Rs 20,000 crore coming back into the banking system due to the hike in tax rebate limit, over Rs 15,000 crore from the hike in TDS threshold on interest earned from savings deposits by senior citizens," he said in a post-Budget media briefing. Besides these two, Rs 7,000 crore is seen coming from the non-senior individuals tax savings due to the income tax slab changes, he added. Asked about MTNL debt resolution and haircu