Finance Minister Nirmala Sitharaman tried to increase the number of taxpayers and added some provisions for Income Tax Return, through which taxpayers may have to pay double TDS.
New Delhi: Finance Minister Nirmala Sitharaman presented the budget for the next financial year 2021-22 in Parliament on 1 February. In the budget, the employed people were disappointed, because the finance minister did not make any changes in the income tax slab. Along with this, he tried to increase the number of taxpayers and added some provisions for income tax returns.
Taxpayers may have to pay double tax
Finance Minister Nirmala Sitharaman added to the section 206AB of a provision income tax during the budget, which now taxpayers may have to pay double TDS (tax deducted at source).
When will you pay double TDS
If the vendors did not file their ITR file for 2 consecutive years, due to which the due date has passed. With this, he had to give TDS or TCS of at least 50 thousand rupees every year in two years. In such a situation, they may have to pay double tax.
To whom will the new provision apply
The new provisions of section 206AB / section 206CCA will apply to all non-salary payments except in certain cases. These new provisions will not apply to TDS on lottery, horse racing, income from investment in securities trust or cash withdrawal from bank. Under the new provisions, all contractors, freelancers, professionals, brokers, agents etc. will have to show the old ITR file proof, only then TDS will be deducted at their normal rates. If they do not provide any proof, they will have to pay TDS at a rate almost double the normal TDS rate (minimum 5 per cent).