Income Tax Return Filing: If you have not filed the ITR for the year 2020-21, you will now be added to the list being prepared by CBDT and double TDS/TCS will be charged to you. How to protect yourself from this? Know here
If you have not filed the Income Tax Return (ITR) for the year 2020-21 or FY21, you may be in big trouble. The Income-tax Department (I-T Deptt) has decided to prepare a list of such people and levy double TDS/TCS on them. According to a report by Business Standard, the Central Board of Direct Taxes (CBDT) issues a circular related to Sections 206AB and 206CCA of the Income Tax Act.
This has been done to bring more people into the ambit of taxation.
What are the new changes?
- According to BS, if the person has missed the deadline for filing the ITR, they will be charged double the TDS/TCS specified under the relevant slabs.
- Also, it will be 5 per cent if the TDS calculation comes out to be less than that. So, double or 5 per cent, whichever is higher.
- Earlier, the penalty was imposed on the people who had not filed the ITR for the previous two years, now it has been changed to one year.
What are the exceptions?
- If the cumulative TDS/TCS is less than Rs 50,000 per year, this will not be applicable.
- Also, it will not be applicable on early withdrawal from EPF, Tax deduction on salary, or on winnings from the lottery, card games or horse trade.
What can you do?
File the ITR. If you have not filed the ITR yet, file it soon. It will remove your name from the list. Also, belated or revised ITRs can be filed. It will also save you from scrutiny.