Finance Bill 2013 was passed by Lok Sabha on 30-04-2013. The following amendments ( in respect of TDS/TCS Provisions ) were carried out to the original Finance Bill presented on Feb 28,2013
TDS @ 1% on transfer of immovable property- Sec. 194-IA
- The Finance Bill has introduced a new section 194-IA providing for TDS @ 1% to be deducted by transferee. This is applicable for sale of immovable property ( other than agricultural land ) where consideration is Rs. 50 Lacs and above.
- The amendment now exempts transferee from the obligation to obtain TAN, which is otherwise mandatory for all deductors
- With this change, we should also now expect procedural changes related to
- Payment of TDS without TAN
- Issuance of TDS certificate and filing of eTDS statement in the absence of TAN
TDS @ 5% on interest on rupee denominated bonds – Section 194LD
- The amendment has introduced a new section : 194LD
- This new section is applicable on interest payable on rupee denominated bonds issued by Govt. or an Indian company
- Such interest is payable between 01-06-2013 to 31-05-2015
- Such interest is payable to FII or Qualified Foreign Investor
- The rate of TDS will be 5%
- For such transactions, provisions of Section 195/196D will not be applicable
No penal rate of TDS for transactions covered under section 194LC
- Section 194LC covers the following payments made to a non resident person or a foreign provided such payment are taxable in India for the payee.
- Interest except Interest on securities.
- Other sum except salaries.
- The amendment in Section 206AA provides that even if deductee does not have a PAN, tax under section 194LC will be deducted at prescribed rate of 5% and penal rate of 20% will not be applicable
Gold coins covered under Tax Collection at Source
- Effective July 2012 TCS is applicable , if sale consideration of bullion exceeds Rs. 2 lac and part or full consideration is paid in cash. However sale of gold coins weighing 1o grams or less were not considered for the purpose this limit of 2 Lacs
- The amendment now makes even sale of gold coins or other articles weighing 10 grams or less will be subject of provisions of tax collection at source, effective June 1, 2013