Claiming of TCS Credit [ Section 206C(4) ] - Income Tax - Ready Reckoner - Income Tax

Claiming of TCS Credit Any amount collected in accordance with the provisions of this section and paid to the credit of the Central Government shall be deemed to be a payment of tax on behalf of the person from whom the amount has been collected and credit shall be given to such person [ or any other person eligible for credit Inserted w.e.f. 01.01.2025 vide Finance (No.2) Act, 2024 ] for the amount so collected in a particular assessment year in accordance with the rules as may be prescribed by the Board from time to time. [ Section 206C(4) ] CBDT Notifies Amendments in Income-tax Rules for Ease in Claiming of TCS Credit of Minors in the Hands of Parents Section 206C(4) of the Act was amended vide FA (No. 2) to allow the credit of TCS to a person other than the collectee such as a parent in the case of a minor collectee when the minor s income is clubbed with that of the parent. Accordingly Vide CBDT Notification No. 114/2024 dated 16.10.2024 Rule 37-I of the Rules has been amended to allow credit of tax collected at Source to a person other than the collectee, in whose hands the income of the collectee is assessable. [ Press release issued as on 17.10.2024 ] As per Rule 37-I(1A) [ Inserted w.e.f. 16.10.2024 vide Notification No. 114/2024 dated 16.10.2024 ] (a) Where under any provisions of the Act, the income of the collectee is assessable in the hands of any person other than the collectee, the credit for the tax collected at source, shall be given to such other person and not to the collectee: Provided that the collectee shall file a declaration with the collector and the collector shall report the tax collection in the name of the other person in the information relating to collection of tax referred to in rule 37-I(1). (b) The declaration filed by the collectee under the proviso to clause (a) shall contain the name, address, permanent account number of the person to whom credit for the tax collectible at source is to be given, amount of payment in relation to which credit is to be given and reasons for giving credit to such person. (c) The collector shall issue the certificate for collection of tax at source under section 206C(3), in the name of the person in whose name credit is shown in the information relating to collection of tax referred to in rule 37-I(1) and shall keep the declaration in his safe custody.