The Central Board of Direct Taxes (CBDT) has notified amendments to income tax rules

Current Context: The Central Board of Direct Taxes (CBDT) notified amendments to the income tax rules on October 15, 2024, effective from October 16, 2024.

• Key Highlights:
• Simplified TCS/TDS Credit Claims for Salaried Employees: The amendments aim to streamline the process of claiming credit for Tax Collected at Source (TCS) and Tax Deducted at Source (TDS) for salaried employees.
• TCS Credit for Minors: The rules have been modified to allow parents to claim TCS credit on behalf of their minor children whose income is clubbed with theirs.
• New Form 12BAA: A new form, 12BAA, has been introduced to facilitate the declaration of non-salary income by employees to their employers. This will help in accurate TDS calculations.

Question:

1 Who can claim TCS credit on behalf of minors under the Central Board of Direct Taxes (CBDT)’s new rules?

• A) Grandparents
• B) Guardians
• C) Teachers
• D) Parents

Answer: D) The new rules allow parents to claim TCS credit on behalf of their minor children whose income is clubbed with theirs.