CBDT has changed the TDS rule from July 1, due to which now the Income Tax Department will charge more TDS, TCS from those who do not file returns.
From July 1, Income Tax Department will charge more TDS, TCS from those who do not file returns. Actually, this rule will apply to those people whose annual TDS is Rs 50,000 or more. At the same time, there is a provision to deduct tax at more than the applicable rate for those who do not file an income tax return.
According to the information, CBDT has introduced this new rule under section 206AB and 206CCA to reduce the burden of tax deductor to check the non-filers of Income Tax Department returns; people associated with this rule are already reporting to Income Tax Department and working through the portal (https://report.insight).
Wherein TDS deductors and TCS depositors will be required to check the performance of PAN of the seller only at the beginning of the financial year from which TDS is to be deducted, or TCS is to be taken. According to the information, the tax department has prepared a list of taxpayers who have not filed income returns for the previous years 2018-19 and 2019-20 at the beginning of the financial year 2021-22.
Extended income tax deadline
According to the information, the Central Board of Direct Taxes has recently extended various deadlines related to income tax to provide some relief given the second wave of Kovid 19. Now taxpayers will have time till July 15 to file TDS for the financial year 2020-21
What are the new TDS rules?
From July 1, those who buy goods and do not file income tax returns will be fined more than before. This has been introduced under sections 206AB and 206CCA of this rule. If someone does not file an income tax return for two years, then this TDS will become 5 percent. The rate of TDS will increase by 50 times, which will be much higher than before.