Some taxpayers may have to pay TDS (Tax Deducted At Source) higher cost, beginning from July. In case, the taxpayer has not applied TDS in the past 2 years and TDS debited every year above Rs.50,000. Then, the IT (Income Tax) will charge more money when applying the ITR (income tax returns) from July 1. Abhishek Soni who is a chief executive officer and co-founder of Tax2Win said that In the Budget of 2021, a new section called 206AB was announced to debit TDS at higher rates with particular nature of salary.
The CBDT (Central Board of Direct Taxes) increased the deadline of file ITR for the financial year 2021. The last date of applying TDS for the 4th quarter of 2020-2021 is June 30 as per the circular. The initial date of filing TDS was May 31.
It is a huge relief for TDS deductors as the return involves huge records and data to be recorded accurately said Surjit Bangar, founder of Taxbuddy.com. The due date of delivery of Form 16 has been increased from June 15 to July 15.
Vivek Jalan who is a partner of Tax Connect Advisory Services LLP mentioned that the latest tax department introduces the latest facility to check the individual had filed the return or not. Under the 206 AB section, for a particular person who doesn’t file ITR for the past 2 years, a person has to pay higher TDS.
In absence of the facility, it cannot be easier to apply the 206AB new section. It is essential to understand that to check GSTR compliance and the GST portal has this feature. Jalan said that for ITR, the income tax portal also has this type of feature.
The new rule will not be applicable in the cases
The new 206AB section will not be applicable under the 192 section for withdrawal or salary from PF (Provident Fund) Under Section 192A. Also, TDS on winning from crossword, puzzle, card game, lottery, or other games, and horse race under Section 194B or 194A will not come under the new section. It will not be relevant for TDS on withdrawal above Rs. 1 crore under 194N section and salary against in the securitization trust under 194LBC section.
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