Twitter
Advertisement

Finance Act, 2021: Not filed Income Tax Return? Pay higher TDS from July 1 - here's why

CBDT issued a circular on Monday on the implementation of Sections 206AB, 206CCA with respect to higher tax deduction/collection for some non-filers.

Latest News
Finance Act, 2021: Not filed Income Tax Return? Pay higher TDS from July 1 - here's why
(Image Source: IANS)
FacebookTwitterWhatsappLinkedin

The Budget 2021 had brought in a provision which mandates that non-filers of income tax returns for the past two fiscal years would be subjected to higher TDS and TCS rate if such tax deduction was Rs 50,000 or more in each of those two years.

A higher TDS/TCS rate would be applicable for Income Tax Return (ITR) non-filers from July 1, according to the Finance Act, 2021. The Finance Act has broadened the scope for collection of tax from the very source to ensure proper income reporting by every assessee.

The Central Board of Direct Taxes (CBDT) issued a circular on Monday on the implementation of Sections 206AB and 206CCA with respect to higher tax deduction/collection for certain non-filers.

"CBDT issues Circular No. 11 of 2021 dated 21.06.2021 on implementation of section 206AB & 206CCA wrt higher tax deduction/collection for certain non-filers. New functionality issued for compliance checks for sec 206AB & 206CCA to ease the compliance burden of tax deductors/collectors," the income tax department tweeted.

This means that with effect from July 1, 2021, a person will have to pay TDS at a higher rate if he/she has not filed Income Tax Returns for the last two years and has aggregate TDS/TCS credit of Rs. 50,000 or more in each of the two years.

The TDS deductor or TCS collector can feed PAN of the deductee or collectee on the functionality and get to know whether the deductee or collectee is a 'specified person'.

Section 206AB will also not be applicable to non-resident deductee/collectee, who do not have a permanent establishment in India.

Find your daily dose of news & explainers in your WhatsApp. Stay updated, Stay informed-  Follow DNA on WhatsApp.
Advertisement

Live tv

Advertisement
Advertisement