New relief for income taxpayers: CBDT allows other person to claim TCS credit for tax paid on expenses like foreign travel, study abroad
CBDT) to allow a different person to claim credit for TCS (tax collected at source) instead of the individual who made the payment when incurring specific expenses. This amendment aims to assist taxpayers in reducing their income tax liability by allowing them to claim the credit, rather than the person who originally paid the money, for the income to which it is attributed.
The CBDT made this amendment via a notification dated October 16, 2024. The notification states, “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.”
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As per the PIB press release dated October 17, 2024, «Sub-section (4) of Section 206C 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.»
Sudhir Kaushik, CEO of Taxspanner, says, “The amendment in the income tax laws will help the individual to give the person to whom credit for the tax collectible at source is to be given, amount of payment in relation to
