Examine the applicability and amount of Tax deduction at source (TDS) or Tax collection at source (TCS) as per the Income-tax Act, 1961 for the A.Y…

(i) Since Mr. Subhash is a salaried individual and pays rent exceeding - 50,000 per month in the F.Y. 2024-25, he is liable to deduct tax at source u/s 194-IB @5% till 30.9.2024 and thereafter @2%. If Mr. Subhash vacated the premises on 31st August, 2024, tax has to be deducted from rent payable for August, 2024. Tax deductible would be - 13,000 [₹ 52,000 x 5 x 5%]. If Mr. Subhash vacated the premises on 31st October, 2024, tax has to be deducted from rent payable for October, 2024. Tax deductible would be - 7,280 [₹ 52,000 x 7 x 2%]. (ii) Under section 206C (1) , seller of certain goods, inter alia , tendu leaves is required to collect tax from the buyers @5%. Seller u/s 206C (1) includes firm. In case of non-furnishing of PAN, tax to be collectible at the higher of twice the specified rate i.e., 10% or @5%. In the present case, ABC Traders is required to collect tax at source u/s 206C (1) @10% on sale of tendu leaves of 12lakhs to XYZ Ltd. at the time of debit or receipt, whichever is earlier.