The Income Tax Department has made some changes to make the DS form comprehensive. These include making it mandatory to report the reasons for not deducting tax. Banks will also have to provide information about 'Tax Deducted at Source' (TDS) on cash withdrawals of more than one crore rupees in the new form.

The Central Board of Direct Taxes (CBDT) has revised the income tax rules through a notification to levy TDS on dividend distribution, cash withdrawals, professional fees and interest by e-commerce operators, mutual funds and business trusts.

Shailesh Kumar, partner of Nangia & Company LLP said that the government has revised the format of Form 26Q and 27Q with this notification. Form 26Q is used to provide quarterly information on TDS deduction on any other payment made by the government or companies in India to employees (Indian nationals) other than salary. Similarly, Form 27Q is used to inform NRIs about deducting TDS on any payment other than salary and depositing it.

Kumar said, "The new forms are more comprehensive and payers will need to report not only the cases in which TDS is deducted but also the cases where TDS has not been deducted. "To discourage cash transactions, the government had imposed a TDS of two per cent on cash withdrawals of more than Rs 1 crore from a bank account in the budget of 2019-20.