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TMI BlogClarification regarding short deduction of TDS/TCS due to increase in rates of surcharge by Finance (No.2) Act, 2019-X X X X Extracts X X X X X X X X Extracts X X X X ..... k, New Delhi Dated 13 th April, 2020 Subject: Clarification regarding short deduction of TDS/TCS due to increase in rates of surcharge by Finance (No.2) Act, 2019-reg. The Finance (No.2) Bill,2019 was tabled in Lok Sabha on 5th July, 2019 which was passed by both the houses of Parliament and became Finance (No.2) Act, 2019 (the Act) which received assent of the President on 1 st ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 37% 2. The enhanced rates of surcharge were applicable from the 1 st day of April, 2019 for previous year 2019-20 relevant to assessment year 2020-21. Thus, every person as referred to above was required to compute his tax liability after taking into account the enhanced rates of surcharge. Further, TDS/TCS under various provisions of the Income-tax Act is required to be deducte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Board and in this regard, it is clarified a person responsible for deduction/collection of tax under any provision of the Income-tax Act will not be considered to be an assessee in default in respect of transactions where:- a) such transaction has been completed and entire payment has been made to the deductee/payee on or before 5 th July, 2019 and there is no subsequent transaction between ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e for benefit provided under this circular. 6. Further, if the deductor/collector has deducted/collected shortfall of tax after 5 th of July, 2019 from the transaction(s) made subsequently after the said date, interest, if any, for delay in deduction/collection of such tax shall not be levied. 7. The above relaxation does not absolve the deductee/payee to pay proper tax including enhanced ..... X X X X Extracts X X X X X X X X Extracts X X X X
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