Mumbai: The banks will recover a higher Tax Deducted at Source (TDS) from some ‘specified’ taxpayers. The rate of TDS will be either twice the rate specified under the relevant section or 5%, whichever is higher.
The new rule will come into force from July 1. The Union Finance Ministry in its Budget for the year 2021 introduced a new section 206AB for this. As per the new rule, all those taxpayers who had not filed Income Tax Returns (ITR) in the last two years and aggregate of TDS exceeds Rs 50,000 in each year, the Income Tax department will charge more while filing the income tax returns (ITR) from July 1.
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‘CBDT issues Circular No. 11 of 2021 dt 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 compliance burden of tax deductors/collectors,’ tweeted Central Board of Direct Taxes (CBDT).
The Income Tax (I-T) Department has launched a new utility to help tax deducted at source (TDS) collectors and tax collected at source (TCS) collectors to identify ‘specified persons’ on whom higher rates of taxes will be imposed. The department has already prepared the list of ‘specified’ taxpayers.
CBDT issues Circular No. 11 of 2021 dt 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 compliance burden of tax deductors/collectors. pic.twitter.com/1DP39BKVZi
— Income Tax India (@IncomeTaxIndia) June 21, 2021
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