The new sections 206AB and 206CCA have been included in the budget. Under this, if you do not provide PAN card to save TDS, then you will have to pay double tax.
Recently, Finance Minister Nirmala Sitharaman has presented the country’s general budget 2021-22. Along with many new announcements in the budget, some changes have also been made in the tax system. Another announcement has been made in the budget with the facility of not filling ITR to people above 75 years of age. This announcement is going to harm those who do not fill ITR. Now those people are going to have double hit in TDS and TCS i.e. now they may have to pay double tax.
In such a situation, if you are not filling ITR to avoid TDS or TCS, then you have to be cautious. According to the new rules, you may have to face difficulty. Let us know what is this new law and what have been changed in the old testament…
What was the rule earlier?
Section 206AA was introduced a few years ago. According to this section, when a person did not give his PAN card to save TDS, then the person concerned had to pay TDS and TCS at the maximum rate. The purpose of this provision was to identify the tax evaders and more tax was collected in the form of files. However, it has been changed now.
However, new sections 206AB and 206CCA have been included in this budget. Under this, if you do not provide PAN card to save TDS, then you will have to pay double tax. According to this section, if you do not file ITR for two consecutive years, you will be charged double tax.
These rules will be applied in case of income other than salary. Please tell that if there are more than 50 thousand TCS and TDS in two years, this rule will apply. Also, under this rule, TDS and TCS will be charged at double or 5 per cent.
This time there have been many changes
Now people over 75 years of age will not have to fill ITR. However, this facility is only for those who are earning from interest and pension. Now they will not have to fill the ITR and the senior citizen’s tax bank will be already deducted.
– Due to some changes made in the budget, it has become easier to fill the ITR. Now while filling ITR, more than half of your information will already be filled.
– In the budget, the tax audit limit has been increased from a turnover of Rs 5 crore to a turnover of Rs 10 crore. This had already been increased from a turnover of Rs 1 crore to Rs 5 crore. This is for those who do about 95 percent of their transactions through digital medium.