There are certain rules about to change from July 1, 2021 in accordance with the announcements made in the Union Budget and as per Finance Act 2021. One of the important changes that will come into effect from next month is related to your income tax returns filing. Come July 1 and you may have to pay double Tax Deducted At Source (TDS) in case you have failed to file your TDS for the last two years.
Starting from July, some taxpayers may have to pay Tax Deducted At Source (TDS) at higher rates. According to Finance Act 2021, if a taxpayer has not filed TDS in the last two years and TDS deducted each year exceeds of Rs 50,000, the Income Tax department will charge more while filing the income tax returns (ITR) from July 1.
The new rule will not apply in these cases
However, the newly applicable section 206AB will not be applicable for TDS deducted under section 192 for withdrawal from salary or provident fund under section 192A. TDS on winnings under section 194B or 194BB by way of card game, crossword, lottery, puzzle or any other game and horse race will not come under the ambit of the new section. It will not be applicable for TDS on income against investment in Securitization Trust u/s 194N and cash withdrawal exceeding Rs.1 crore under section 194N.
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