Income Tax Return: There is very important news for the taxpayers. From July 1, some taxpayers may have to pay excess deduction (TDS).
New Delhi. There is very important news for the taxpayers. From July 1, some taxpayers may have to pay excess deduction (TDS). Let us tell you that the Income Tax Department has made the rules very strict for those who do not file ITR. The last date for filing Income Tax Return (ITR) for the financial year 2020-21 has been extended from July 31 to September 30. As per the rules, Tax Collection at Source (TCS) will also be levied on those who have not filed ITR. According to the new rules, from July 1, 2021, the penal TDS and TCS rates will be 10-20% which is usually 5-10%.
Know the new rules of TDS
According to the new rules of TDS, TDS can be charged under section 206AB of the Income Tax Act 1961 at twice the existing provisions of the Income Tax Act or twice the prevailing rate or 5%, whichever is higher. For TCS It will also be payable at the rate prevailing as per the existing provisions or 5% whichever is higher.
What should taxpayers do?
According to the new rules, now if you want to avoid double TDS, then whatever income you have, whether taxable or not, but its return will have to be filed. Similarly, if a person has turned 18 years last year or this year and before that he did not have taxable income, his return can be filed even though. Let us tell you, according to the Income Tax Act, all individuals can file their income tax returns, whether they are adults or not.
The rule will not apply to these people
This section of income tax (Section 206AB) will not apply to salaried employees. Also, it will not apply to non-resident persons also. However, giving relief to the weak and middle class, the government has added a condition in it that this provision will not be applicable to the taxpayers who have not deducted TDS or TCS of 50,000 or more in the last 2 years.
Know what is TDS?
If someone has any income, then after deducting tax from that income, if the remaining amount is given to the person, then the amount deducted as tax is called TDS. The government collects tax through TDS. It is deducted on different types of income sources like salary, interest or commission received on any investment etc. Any institution (which comes under the purview of TDS) who is making the payment, it deducts a certain amount as TDS.
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