Key Recent TDS Updates & Deadlines
Urgent TDS/TCS Correction Warning: The CBDT warned that the deadline for filing TDS/TCS corrections for several past financial years (FY 2018-19 to 2023-24) is March 31, 2026, due to the new Income Tax Act, 2025 transition.
TDS on Rent (Section 194-IB): Tenants paying over ₹50,000 monthly must deduct 2% TDS on annual rent in March, with a 20% penalty if the landlord's PAN is not provided
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New Tax Calculators: The Income Tax Department has introduced online calculators for TDS/TCS to help with compliance under the new 2025 regulations.
New Form 130 (Form 16 Replacement): From April 1, 2026, employers will use the TRACES portal to issue Form 130 instead of Form 16, offering detailed, system-based salary reporting.
Reduced Rate (Section 194H): Effective October 1, 2024, the TDS rate on commission/brokerage (excluding insurance) was reduced from 5% to 2%.
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