Tax Deduction/Collection at Source
Extension of date of filing of TDS/TCS return
CA. Manoj Gupta
The due date for filing of TDS returns in Form No. 26Q and 27Q for first quarter of 2023-24 is 31st July, 2023 and for TCS returns in Form No. 27EQ for the first quarter of 2023-24 is 15th July, 2023.
This date has been extended to 30th September, 2023 by CBDT via Circular No. 09/2023, dt. 28-6-2023.
However, no such extension has been granted in respect of TDS returns in Form No. 24Q (Dealing with salary payments)
Accordingly, TDS certificates in Form No. 16A for first quarter of 2023-24 shall be issued by 15th October, 2023. Similarly, TCS certificates in Form No. 27D for first quarter of 2023-24 shall also be issued by 15th October, 2023.
6. TCS on foreign remittances
Through the Finance Act 2023, amendments were carried out in sub-section (1G) of section 206C of the Act.
These amendments, inter alia, increased the rate of TCS from 5% to 20% for remittance under LRS as well as for purchase of overseas tour program package and removed the threshold of Rs. 7 lakh for triggering TCS on LRS. These two changes were not applicable when the remittance is for education or medical purpose. These amendments were to take effect from 1st July 2023.
The Government had notified Foreign Exchange Management (Current Account Transactions) (Amendment) Rules, 2023 vide an e-gazette notification dated 16th May 2023 to remove the differential treatment for credit cards vis-a-vis other modes of drawal of foreign exchange under LRS.
discussions with various stakeholders, and taking into account comments and suggestions received, the following decisions have been taken and the CBDT via press release dated 28-6-2023 provided as under:
(i) To give adequate time to Banks and Card networks to put in place requisite IT based solutions, the Government has decided to postpone the implementation of its 16th May 2023 e-gazette notification. This would mean that transactions through International Credit Cards while being overseas would not be counted as LRS and hence would not be subject to TCS. The Press Release dated 19th May 2023 stands superseded.
(ii) Threshold of Rs. 7 Lakh per financial year per individual in clause (i) of sub-section (1G) of section 206C shall be restored for TCS on all categories of LRS payments, through all modes of payment, regardless of the purpose: Thus, for first Rs. 7 Lakh remittance under LRS there shall be no TCS. Beyond this Rs. 7 Lakh threshold, TCS shall be: