Tax Payers Alert - Rightsofemployees.com https://www.rightsofemployees.com Know Your Rights Tue, 05 Jul 2022 08:17:02 +0000 en-US hourly 1 https://wordpress.org/?v=7.0.4 https://www.rightsofemployees.com/wp-content/uploads/2018/01/cropped-emp1-32x32.png Tax Payers Alert - Rightsofemployees.com https://www.rightsofemployees.com 32 32 Tax Payers Alert ! Get Ready To Pay Higher TDS in FY 2022-23 https://www.rightsofemployees.com/tax-payers-alert-get-ready-to-pay-higher-tds-in-fy-2022-23/ Tue, 05 Jul 2022 09:03:40 +0000 https://www.rightsofemployees.com/?p=997 Income Tax Return: Not filing Income Tax Return (ITR) before the due date is going to cost some taxpayers dearly! In fact, as per a new rule under section 206AB and 206CCAA, if you have failed to file ITR for AY 2021-2022 (FY 2020-2021), higher TDS will be applicable on some of your income during […]

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]]> Income Tax Return: Not filing Income Tax Return (ITR) before the due date is going to cost some taxpayers dearly! In fact, as per a new rule under section 206AB and 206CCAA, if you have failed to file ITR for AY 2021-2022 (FY 2020-2021), higher TDS will be applicable on some of your income during the current financial year. . This new rule has come into effect from April 1, 2022, which was introduced in the Union Budget 2022.

The provision of levying higher TDS on those who do not file ITR was introduced for the first time in the Finance Act 2021. However, as per the previous rule, those who did not file ITR had to pay higher TDS on certain incomes after two years. The Central Board of Direct Taxes (CBDT) has clarified in a new circular dated 17 May 2022 that this time limit has now been reduced to 1 year. The last date to file ITR for the financial year 2020-21 was 31 December 2021.

What do experts say
Commenting on the new circular, Sanjay Kumar, Partner, Deloitte India, said, “This circular is intended to help taxpayers to identify non-filers (or specified persons) and remove the difficulty in interpretation of compliance provisions. Such circulars are beneficial for those taxpayers who file their tax returns on time.”

The circular further states that the definition of “specified person” does not include a person whose aggregate TDS and TCS in 2021-2022 is less than Rs 50,000. The definition of “specified person” does not include a non-resident who does not have a permanent establishment in India. The circular further said, “Bilated and revised TCS and TDS returns for the respective financial year filed during the financial year 2022-23 shall also be considered for exclusion of persons from the list of specified persons on regular basis.”

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