Not submitting Income Tax Return (ITR) earlier than the due date goes to be pricey for some taxpayers! Higher TDS will change into relevant on sure incomes of some taxpayers in the course of the present monetary 12 months if s/she missed submitting ITR for AY 2021-2022 (FY 2020-2021), in keeping with a brand new rule beneath Sections 206AB and 206CCAA. The new rule, which turned efficient from 1st of April 2022, was launched via Union Budget 2022.
The provision to impose larger TDS on non-filers was first launched via Finance Act 2021. However, as per the earlier rule, a non-filer turned liable to pay larger TDS on sure incomes after two years. Through a brand new round dated May seventeenth 2022, the Central Board of Direct Taxes (CBDT) has clarified that this time restrict has now been diminished to 1 12 months.
“…now a person can become a specified person for default in one year instead of earlier provision of default in two years,” the round stated.
The final date to file ITR for FY 2020-21 was December 31, 2021.
The “specified person” as outlined within the new round is
- Someone who has not furnished the return of earnings for the evaluation 12 months related to the earlier 12 months instantly previous the monetary 12 months through which tax is required to be deducted/collected. The earlier 12 months to be counted is required to be the one whose return submitting date beneath sub-section ( I) of part 139 has expired.
- Someone whose mixture TDS and TCS is greater than Rs 50,000 within the earlier 12 months.
Commenting on the brand new round, Sanjay Kumar, Partner, Deloitte India, stated, “This circular is going to help the taxpayers in determining the non-filers and remove difficult in interpretation of the compliance provisions. Such circulars are beneficial to the taxpayers who file their tax returns in time, dutifully.”
The round additional stated that the definition of “specified person” doesn’t embody somebody whose mixture of TDS and TCS in 2021-2022 is lower than Rs 50,000.
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The “specified person” definition additionally doesn’t embody a non-resident who doesn’t have a everlasting institution in India.
“Belated and revised TCS & TDS returns of the relevant financial year filed during the financial year 2022-23 would also be considered for removing persons from the list of specified persons on a regular basis,” the round stated.
Source: www.financialexpress.com”