New Amendments in Income Tax Rules for Enabling claiming TCS Credit of Minors in the Hands of Parents: CBDT

The Central Board of Direct Taxes (CBDT) has introduced new amendments to the Income-tax Rules to enable parents to claim Tax Collected at Source (TCS) credit on behalf of their minor children. This change, effective from October 17, 2024, aims to simplify the process for parents managing the financial affairs of their minor children. The amendments specify that parents can claim TCS credit in their income tax returns if the income of the minor child is clubbed with their income under section 64 of the Income-tax Act, 1961. This initiative is part of the government’s broader efforts to streamline tax compliance and provide clarity on the treatment of TCS credits for minors. The new rules are expected to benefit parents by reducing the administrative burden and ensuring that TCS credits are accurately reflected in their tax returns.