Finance Minister Nirmala Sitharaman presented the budget for the next financial year 2021-22 in Parliament on February 1. In this budget, the job seekers were disappointed as the Finance Minister did not make any changes in the Income Tax Slab. At the same time they tried to increase the number of taxpayers and also added some provisions for income tax returns.
Taxpayers may have to pay double the tax
Finance Minister Nirmala Sitharaman added a provision during the budget to Section 206AB of the Income Tax Act, which now requires taxpayers to pay double TDS (tax deducted at source).
When do I have to pay double TDS?
If the sellers have not filed their ITR file for 2 consecutive years, the due date of which has passed. At the same time, they had to pay TDS or TCS of at least Rs 50,000 every year for two years. In that case, they may have to pay double the tax.
The new provision of Section 206 AB / Section 206 CCA will be applicable to all non-wage payments except certain matters. This new provision does not apply to lottery, horse racing, income from investments in securities trusts or TDS on cash withdrawals from banks. Under the new provisions, all contractors, freelancers, professionals, brokers, agents, etc. will have to show proof of old ITR file, then TDS will be deducted on their normal rates. If they do not provide any proof, they will have to pay TDS at almost twice the normal TDS rate at an opportunity rate (at least 5 per cent).