On July 19, 2024, the Government of Rajasthan issued an amendment to its earlier notification No. F.12(56) FD/Tax/2017-Pt-II-117, dated September 20, 2018. This amendment specifically addresses the rate of Tax Collected at Source (TCS).
Key Amendment Details:
The revised notification introduces a reduction in the TCS rate. Previously set at 0.5%, the rate will now be halved to 0.25%. This adjustment aims to ease the tax burden on businesses and individuals alike, providing a more favorable financial environment.
Implications for Businesses and Individuals:
- Financial Relief: The reduction in TCS rate will reduce the amount of tax collected at source, which could improve cash flow for businesses and individuals involved in transactions that are subject to TCS.
- Administrative Adjustments: Businesses will need to update their tax processing systems and documentation to reflect the new TCS rate. It’s advisable to review your tax strategies and ensure compliance with the revised rates.
- Future Planning: Organizations should stay informed about any additional changes or updates in state tax policies to effectively manage their tax obligations.
Effective Date:
The new rate will come into force starting from July 10, 2024. This means that any transactions or financial activities from this date onward will be subject to the revised TCS rate of 0.25%.
