ITR: File income tax return by June 30, otherwise double TDS will be deducted, these rules will change from July 1

If you have not yet filed your Income Tax Return, then submit the ITR by 30th June, otherwise you will have to pay double TDS after that. If a taxpayer has not filed TDS in the last 2 years and the deduction of TDS in each year exceeds Rs 50,000, then the Income Tax Department will levy more charges while filing ITR from July 1.

After the implementation of the Finance Act 2021, changes have been made in the rules of TDS. These changes are related to TDS Rules for goods purchase and those who do not file ITR (TDS Rules for non ITR filers).

These new changes will be effective from July 1. In the general budget presented for the financial year 2021-22, Finance Minister Nirmala Sitharaman announced several major changes in the income tax system which will be implemented from July 1, 2021.

Abhishek Soni, Co-Founder and CEO, Tax2win said, where ITR has not been filed for the last 2 years and TDS deducted each year is more than Rs 50,000, then the tax on it will have to be doubled.

The CBDT has extended the deadline for filing income tax returns for the financial year 2021 to June 30. The last date for filing TDS for the fourth quarter of the financial year 2020-21 has been extended.

According to the new rules, for those who have not filed ITR, the rates of TDS and TCS will be 10 to 20 percent from July 1, earlier it was 5 to 10 percent.

Vivek Jalan, Partner, Tax Connect Advisory LLP said that the new income tax return e-filing portal has a new facility to check whether the individual has filed the return earlier or not. Under the new section 206AB, those who have not filed ITR for the last two years will have to pay double the TDS.

Let us tell you that from July 1, 206AB section will also be implemented. Under this, if a seller has not filed ITR for 2 consecutive years, then this TDS will be 5%, which was 0.10% earlier. That is, TDS will have to be paid 50 times more. If the TDS in the previous financial year is more than Rs 50,000, then TDS deduction will be done at the rate of 5% only.

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