Central Government Employees Latest News

8th Pay Commission Latest News Today, Pay Matrix, Expected DA Rates Table

You are here: Home / Finmin Orders / Clarification regarding short deduction of TDS/TCS due to increase in rates of surcharge by Finance (No.2) Act 2019
7th Pay Commission Salary Calculator January 2025 (55% DA Updated)
January 2025 DA Calculator (55% Confirmed!)
New Rates of House Rent Allowance (Updated 2025)
New Rates of Transport Allowance (Updated 2025)
Central Government First Pay Calculator 2025

Clarification regarding short deduction of TDS/TCS due to increase in rates of surcharge by Finance (No.2) Act 2019

April 17, 2020 admin Leave a Comment

Further, if the deductor/ collector has deducted/ collected shortfall of tax after 5th of July, 2019 from the transaction(s) made subsequently after the said date, interest, if any, for the delay in deduction/collection of such tax shall not be levied.

Circular No. 8/2020

F.No.370133/5/2020-TPL
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
(TPL Division)

Room No. 1478-H, North Block, New Delhi
Dated 13th 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 1st August 2019. The Act provided for increase in the rate of surcharge as under:

S.No. Income slab Surcharge before the Act Enhanced surcharge as provided by the Act
l Less than 50 lakh rupees Nil Nil
2 50 lakh rupees but less than 1 crore rupees 10% 10%
3 I crore rupees but less than 2 crore rupees 15% 15%
4 2 crore rupees but less than 5 crore rupees 15% 25%
5 5 crore rupees and above 15% 37%

2. The enhanced rates of surcharge were applicable from the 1st 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 deducted/ collected after taking into account the enhanced rate of surcharge.

3. Several cases have come to the notice of the Central Government wherein deductors/ collectors were held to be an assessee in default for short deduction of TDS/short collection of TCS in cases where final transaction was done before laying of the Finance (No.2) Bill, 2019 in the Parliament, i.e. 5th July 2019. Since the transaction was completed before the rates of enhanced surcharge were announced and the concerned deductee/payee is required to furnish their Income-tax return for the relevant assessment year, it has been requested that in such cases, deductor or collector should not be held to be an assessee in default under section 201 of the Income-tax Act.

4. The above issue has been examined by the 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 5th July 2019 and there is no subsequent transaction between the deductor/collector and the deductee/payee in the financial year 2019-20 from which the shortfall of tax could have been deducted/collected by the deductor/collector;

b) TDS has been deducted or TCS has been collected by such deductor /collector on such sum as per the rates in force as per the provisions prior to the enactment of the Act;

c) such tax deducted or collected has been deposited in the account of Central Government by the deductor/collector on or before the due date of depositing the same;

d) TDS/TCS statement has been furnished by such person on before the due date of filing of the said statement.

5. However, if the person fails to fulfill any of the conditions as laid down above, such a person will, with respect to short deduction /collection, not be eligible for benefit provided under this circular.

6. Further, if the deductor/ collector has deducted/ collected shortfall of tax after 5th 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 docs not absolve the deductee/payee to pay proper tax including enhanced surcharge by advance tax or self-assessment tax and file return of income after paying such tax.

This issues with the approval of Finance Minister.

sd/-
(Ankit Jain)
Dy. Commissioner of Income-tax (OSD)
TPL Division

Click to view the IT Order

Related updates:

    Old Regime Vs New Regime Tax Calculator 2023-24 from Income Tax Department

Filed Under: Finmin Orders, Finmin Orders 2020, INCOME TAX

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Online Calculators

  • 7th Pay Commission Salary Calculator January 2025 (55% DA Updated)
  • Expected DA from July 2025 Calculator
  • Pay Scale Conversion Calculator
  • 7th CPC Increment Calculator 2025
  • KVS PGT, TGT, PRT Teacher Salary Calculator 2025
  • Bonus Calculator for CG Employees 2025
  • CGEGIS Savings Fund Benefit Calculator Updated 2025
  • Central Government First Pay Calculator 2025
  • Retirement Date Calculator for CG Employees
  • DA Arrears Calculator January 2025 (55% Updated)
  • Commutation Factor Value of Pension Calculator
  • Leave Encashment of CG Employees Calculator
  • HRA Income Tax Exemption Calculator for Salaried Employees
  • 7th CPC Pension and Arrears Calculator
  • Fixation of Pay on Promotion Calculator as per FR 22(I)(a)(1)
  • 7th CPC Pay Calculator for Teachers in Universities and Colleges
  • 18 Months DA Arrears Calculator for CG Employees
  • 18 Months DA Arrears Calculator for CG Pensioners
  • 7th CPC TA & DA Calculator
  • Government Pension Calculator 2025
  • CPSE (IDA Pay Scale) Salary Calculator
  • DA Amount Calculator Online 2024
  • Dearness Relief (DR) Calculator for Pensioners
  • Expected January 2024 IDA Calculator for BSNL Employees
  • Expected IDA Calculator from April 2024 for CPSE Employees
  • GPF Interest Rate Calculator
  • HRA Online Calculator
  • LTC Cash Voucher Scheme Calculator
  • Option Calculator for Promotion or MACP to Switch over to 7th CPC
  • OROP Arrears Calculator for Defence Pensioners
  • Simple Online New & Old Regime Income Tax Calculator

State Govt Calculators

  • Maharashtra Govt 7th Pay Commission Calculator
  • Karnataka Pension and Family Pension Calculator
  • Option for Fixation Calculator for Tamil Nadu Govt Employees
  • Pay Calculator for Jammu & Kashmir Govt Employees
  • Pay Scale Calculator for Karnataka Govt Employees
  • Rajasthan Employees Pay Matrix Calculator
  • Tamil Nadu Govt Employees Pay Calculator
  • WB 6th Pay Commission Revised Pay Calculator

Top Pages

  • Pay Matrix Table for Central Government Employees
  • 7th CPC DA Calculation Table 2016 to 2025
  • DA Rates Table 2025 | Current DA Rate 53%
  • CSD Price List 2025: Car, Bike, Scooter, AC, TV, WM and Fridge
  • Kendriya Vidyalaya Fee Structure 2025-26
  • Kendriya Vidyalaya Balvatika School Admission Form 2025-26
  • 7th CPC Briefcase Allowance 2025

8th Pay Commission News

  • Latest 8th Pay Commission News Date, Salary Slab, Pay Scale Calculator
  • Expected 8th Pay Commission Pay Matrix Table

Latest Discussions

  • Manoj Kumar on Clarification on MACP Grade Pay 4200 to 4600 Inspector Posts
  • M K KUMAR on Gratuity ceiling raised to 20 Lakhs w.e.f. 29.3.2018
  • M K KUMAR on Clarification on MACP Grade Pay 4200 to 4600 Inspector Posts
  • Meena on KV School Contractual Teachers | Consolidated Pay and Qualification for all Posts 2025-26
  • dilip yadaav on 7th CPC MACP APAR Benchmark Grading System
  • A V FERNANDEZ on 7th CPC Pay Fixation on Promotion Calculator with Matrix Table 2025
  • Harpreet Singh on Gratuity ceiling raised to 20 Lakhs w.e.f. 29.3.2018
  • Thirumalesh C on Clarification on MACP Grade Pay 4200 to 4600 Inspector Posts
  • M K KUMAR on Karnataka Pension and Family Pension Calculator
  • M K KUMAR on Karnataka Pension and Family Pension Calculator
Copyright © 2023 | Central Government Employees News | 7th Pay Commission News | Sitemap | Site maintained by TEUT Digital Concepts