Income Tax Returns: File your TDS by THIS date to avoid paying it at higher rates; check details here
New Delhi | Jagran Business Desk: Amid the COVID-19 pandemic, the government had extended the deadlines to file Income Tax Returns (ITR) for FY 2021 till June 30. If some taxpayers failed to file their ITR by June 30, then they might have to pay their Tax Deducted At Source (TDS) at higher interest rates. According to the government's section 206AB, announced in the Budget 2021, those who have not filed TDS in the last two years and TDS deducted each year exceeds Rs 50,000, the IT department will charge higher rates by July 1.
As per the circular issued by the Central Board of Direct Taxes (CBDT), the last date for filing the income tax returns for the financial year 2021 has been extended. The last date of filing Tax Deducted at Source (TDS) for the 4th quarter of FY 2020-21 has been extended to June 30. Earlier, the deadline to file the ITR was May 31.
According to Vivek Jalan, Tax Connect Advisory Services LLP, as quoted by News18, the new income tax website may have a new option of checking whether an individual has filed the returns in the past or not. “Under new section 206AB, for specified persons who have not filed ITRs for the last two years, a higher TDS has to be deducted by the payer. It is expected that for the deductor to check whether the deductee has filed its last two ITRs or not, the new tax portal is going to have a new facility," Jalan said as quoted by News18.
“In absence of such a facility, it may not be possible to implement the new Section 206AB. It is important to note that to check GSTR compliance the GST Portal already has this kind of feature. Now for ITR, the income tax portal is also expected to have this feature," he further added.
However, section 206AB will not be implemented for those taxpayers whose TDS was deducted under Section 192 for salary or withdrawal from Provident Funds under Section 192A. TDS on winning from the card game, crossword, lottery, puzzle or any other games and horse race under Section 194B or 194BB will also not come under the purview of Section 206AB. It will also not be applicable for TDS on cash withdrawal over Rs 1 crore under Section 194N and income against investment in the securitisation trust under Section 194LBC.
Posted By: Talibuddin Khan