FORM 12BAAThis form 12BAA will be used by employees to report tax deductions from income sources other than their salaries, such as fixed deposits, insurance commissions, dividends from stocks, or tax collected during purchases, like buying a car or foreign currency. WHAT IS FORM 12BAA?Form 12BAA is a new statement that includes information about non-salary income and TCS details, which were not included in the previous version. This form is straightforward, requiring employees to report their TDS and TCS from other sources. It serves as an additional notice to employers. Employees will need to submit Form 12BA along with Form 12BAA. SECTION 192 OF INCOME-TAXAs per Sec 192, tax is deductible from an employee's salary by the person responsible for salary payments. Deductors are required to consider all income-tax provisions pertaining to computation of taxable salary and corresponding tax liability. When an employee provides a declaration of his other income to the employer (which is optional), the employer will have to take into account not only the salary income but also any other income and the tax already deducted by the payer of that other income.TAX COLLECTD AT SOURCE (TCS) AND TAX DEDUCTED AT SOURCE (TDS)Earlier, there was no provision to claim credit for TCS from employers. Section has been substituted (with effect from October 1, 2024), allowing deductors (employers) to take TCS credit into account while calculating TDS liability on salary. However, TDS on salary can... |
