If you have not yet filed Income Tax Return, then fill it this month, because from July 1, you may have to pay a big price, let us tell you that the IT Department has made the rules very strict for th,ose who do not file ITR.
If you have not yet filed Income Tax Return, then fill it this month, because from July 1, you may have to pay a big price, let us tell you that the Income Tax Department has made the rules very strict for those who do not file ITR. The last date for filing Income Tax Return for the financial year 2020-21 has been extended from July 31 to September 30. The new portal of Income Tax has also started from today.
Fill Income Tax Return otherwise TDS, TCS will be doubled
According to the new rules of the Finance Act, 2021, if a taxpayer does not file income tax return for two consecutive years, then he will have to pay double TDS and TCS. If the TDS, or TCS arrears for these two years are 50 thousand rupees or more, then TDS will have to be paid according to the higher rates. This rule will come into effect from July 1, 2021, the penal TDS and TCS rates will be 10-20 percent, which is usually 5-10 percent.
According to the new TDS rules, under section 206AB of the Income Tax Act, 1961. TDS can be charged at twice the existing provisions of the IT Act twice the prevailing rate or 5 percent. For TCS also, it will be payable according to the prevailing rate or 5% whichever is higher as per the existing provisions.
This rule will not apply to them
These rules of section 206AB of IT Salary under section 192, payment of dues of employees under 192A, lottery under 194B, amount won in crossword, amount won in horse race, investment in securitization trust under 194LBC Income earned from and will not be applicable on cash withdrawal.
Apart from this, it will not be applicable to non-resident taxpayers not having permanent establishment in India under section 206AB. If both sections 206AA (higher TDS rate in case of non-PAN) are applicable, then the TDS rate will be higher than the rates mentioned above. As far as TCS is concerned, more TCS will be applicable under section 206CC and 206CCA.
