In Budget 2021, a new section 206AB was introduced to deduct TDS at a higher rate in certain cases
New Delhi: Income Tax Return: 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 for it. hardened.The last date for filing Income Tax Return (ITR) 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 did not fill income tax return from last two 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 at the higher rates.The rate of TDS will be twice the specified usually deducted rate. This rule will come into effect from July 1, 2021, the rates of penal TDS and TCS will be deduct at 10-20 percent, which is usually 5-10 percent.
This rule will not apply to them
These rules of section 206AB of income tax 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 secularisation 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 who do not have permanent establishment in India under section 206AB. If both sections 206AA (higher TDS rate in case of non-PAN) and 206AB 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.
What is TDS?
The salary is given to the employee after deducting the tax in the income, the amount that has been debit is called TDS i.e. Tax Deducted at Source. For example, the company who does a job in a salaried class, already debit TDS and then puts the salary in the employee’s account. This debit amount company gives to the government in the form of TDS.
What is TCS?
Tax Collected at Source i.e. TCS means that a businessmen collected tax from the customer and deposited it to the government. This is called TCS.