Not submitting Income Tax Return? Be able to pay greater TDS from subsequent month

From subsequent month, the next Tax Deducted At Source (TDS) price can be relevant for Income Tax Return (ITR) non-filers, in response to the Finance Act, 2021. So, if a taxpayer has not filed TDS within the final two years and TDS deducted annually exceeds ₹50,000, the tax division will cost extra whereas submitting the ITR from July 1.

“In the last budget, a new section 206AB was introduced to deduct a higher rate of TDS in the cases where income tax return not filed for the last two previous years and the TDS deducted in each of these two previous years exceeds ₹50,000. Basically, Government wants to ensure the filing of return of income by those people who have suffered a reasonable amount of TDS/TCS,” stated Abhishek Soni, Co-Founder and CEO, Tax2win.in.

New TDS rule

The price of TDS shall be greater than the under limits

Double the speed specified within the related provision of the Income Tax Act orDouble the speed or charges in drive orAt the speed of 5 per cent.Where new TDS rule won’t apply

“The provisions of this section will not be applicable if the total TDS deduction in each previous year is less than ₹50,000 or you are filing your income tax return regularly for the last 2 years,” assist Abhishek Soni.

Further, if TDS is to be deducted on wage revenue (192), lottery(194B), horse race (194BB), PF (192A), belief revenue(194LBC), and on money withdrawals (194N), then the provisions of this part won’t apply. Also, the next price of TDS will not be relevant within the case of NRI who doesn’t have any everlasting institution in India, he added.

The Central Board of Direct Taxes (CBDT) has prolonged the deadlines to file revenue tax returns for the monetary yr 2021. The final date of submitting Tax Deducted at Source (TDS) for the fourth quarter of the monetary yr 2020-21 has been prolonged to June 30, in response to the round.

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