If you are not filing income tax return, then from July 1, you may have to pay more TDS and tax. According to the Finance Act, 2021, if a taxpayer has not filed income tax return for the last two years, then he will have to pay more TDS and Tax (TCS). If the TDS or TCS (Tax Collection at Source) outstanding in these two years is Rs 50,000 or more, then TDS will have to be paid at the higher rates. This rule will come into effect from 1 July 2021.
Accordingly, TDS will have to be paid
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 Income Tax Act or twice the prevailing rate or five per cent, whichever is higher. For TCS also, it will be payable at the prevailing rate as per the existing provisions or five per cent whichever is higher.
Do not withdraw advance from EPF account without thinking, know in what circumstances it is wise to do so
This rule will not apply to them
This (Section 206AB) rule of the Income Tax Act will not apply to salary, payment of dues to employees, winnings in crossword and lottery, winnings on horse races, income from investments in securitization trusts and cash withdrawals. It will also 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) 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. Earlier the last date for filing income tax return was 31st July but now it has been extended to 30th September.