<table style="float: left; width: 100%;"><tbody><tr><td style="text-align: center;"><img src="https://static.gujaratsamachar.com/content_image/content_image_1f5b6fb0-596f-4b9e-baa0-9542acb6e768.jpeg" data-filename="1000182419.jpg" style="width: 100%;"></td></tr><tr><td class="tr-caption" style="display: flex;justify-content: center;scale: 0.8;">Tax Collected at Source credit </td></tr></tbody></table> Parents sending their children abroad for studies can now claim credit for the Tax Collected at Source (TCS) on the funds remitted, as per the newly introduced Form 12BAA, effective from October.Previously, the provision stated that only the child can claim a refund of the TCS amount.However, with the introduction of Form 12BAA, parents can now also claim this amount.This move also opens up the avenue for those who have travelled abroad to claim a refund of the TCS amount they paid.The parents through the form can claim the TCS amount as a credit against their own tax returns.If a person remits more than ₹7 lakh in a year for a student studying abroad, a 5% TCS is applicable.To claim credit for the TCS paid on funds remitted abroad, the taxpayer is mandated to submit a declaration to the tax collection authority. This declaration should include details of the bank or institution that collected the TCS amount.The declaration must clearly state that the TCS credit is to be refunded to a different PAN.The individual must provide their name, address, and proof of identity, along with the name and identity proof of the person claiming the TCS amount.The PAN of the person receiving the TCS credit must also be provided.They must also specify the amount remitted as fees for studies abroad or for travel expenses.As per the central budget of 2024, the details have been incorporated in Form 12BAA. With this, it will be possible to set off both Tax Deducted at Source (TDS) and TCS amounts.The form will include details of TDS and TCS deducted on income from sources other than salary.The taxpayer will have to mention the TDS-TCS deducted on income earned from sources other than salary.This includes income from fixed deposits, insurance policy commissions, dividends from share investments, and goods and services tax paid while purchasing a vehicle or foreign exchange.

Parents sending their children abroad for studies can now claim credit for the Tax Collected at Source (TCS) on the funds remitted, as per the newly introduced Form 12BAA, effective from October.

Tax-Collected-at-Source

Tax-Deducted-at-Source

Foreign-Students

TCS-Credit

New form 12BAA allows parents to claim TCS credit for children studying abroad

CATEGORIES

CITY NEWS