Income Tax Returns Filing: THESE taxpayers may have to pay double TDS from July—check what Finance Act 2021 says
INCOME TAX NEWS: TDS filing last date: There are certain rules about to change from July 1, 2021 in accordance with the announcements made in the Union Budget and as per Finance Act 2021.
INCOME TAX NEWS: TDS filing last date: There are certain rules about to change from July 1, 2021 in accordance with the announcements made in the Union Budget and as per Finance Act 2021. One of the important changes that will come into effect from next month is related to your income tax returns filing. Come July 1 and you may have to pay double Tax Deducted At Source (TDS) in case you have failed to file your TDS for the last two years.
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As per Finance Act 2021, if a taxpayer has not filed TDS in the last two years and TDS deducted each year exceeds of Rs 50,000, the Income Tax department will charge more while filing the income tax returns (ITR) from July 1.
A gazette from Ministry of Law and Justice (Legislative Department), in the draft of The Finance Act, 2021, has mentioned the special provision for deduction of tax at source for non-filers of income-tax return.
After section 206AA of the Income-tax Act, the following section shall be inserted with effect from the 1st day of July, 2021, namely:–– ‘206AB. (1) Notwithstanding anything contained in any other provisions of this Act, where tax is required to be deducted at source under the provisions of Chapter XVIIB, other than sections 192, 192A, 194B, 194BB, 194LBC or 194N on any sum or income or amount paid, or payable or credited, by a person (hereafter referred to as deductee) to a specified person, the tax shall be deducted at the higher of the following rates, namely:––
Special provision for deduction of tax at source for non-filers of income-tax return.
(i) at twice the rate specified in the relevant provision of the Act; or
(ii) at twice the rate or rates in force; or
(iii) at the rate of five per cent.
Earlier, keeping Covid 19 situation in mind, the government has extended the deadlines to file income tax returns for the financial year 2021. As per the revised deadline, the last date of filing TDS for the fourth quarter of FY 2020-21 has been extended to June 30 from May 31.
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