Filed Your Income Tax Returns? Double TDS Penalty, Check the Last Date

 - Sakshi Post

If you still haven’t filed TDS, then do it soon. Starting from 1 July, the taxpayers might have to pay double Tax Deducted At Source (TDS). If you have not filed the TDS in the last two years and now that the TDS deducted is more than Rs 50,000, you will have to pay higher rates while filing the ITR.

Earlier the last date for the ITR was extended till May 31. After a lot of taxpayers requested an extension, the central government finally agreed and decided to shift the last date from 31 March 2021 to 31 May 2021 for ITR filing. Now from 31st May, the date was again extended till June 30.

The Central Board of Direct Taxes (CBDT) extended it to June 30. By that date, you will have to file the income tax returns (ITR).

Abhishek Soni, co-founder and chief executive officer, Tax2win explained it and said that in the 2021 Budget, a new section was introduced. Section 206AB is there to deduct TDS at a higher rate on cases with certain nature of income. This is in case the return of income not filed for the previous two years and TDS deducted in each year exceeds Rs 50,000.

“Under the new section 206AB, for individuals who have not filed ITRs for the last two years, a higher TDS has to be deducted by the payer. It is likely for a deductor to check whether the deductee has filed its last two ITRs or not, the new tax portal will also have a new facility,” Vivek Jalan, partner, Tax Connect Advisory Services LLP said.

This comes as a relief to the TDS deductors. Now any filing that has to be done should be over before June 31.

Since the situation in the country is not good and the pandemic has put India under a lockdown, many taxpayers found it difficult to do the needful on time. That is why the government decided on an extension. You can visit the e-filing portal that was launched recently. Any query or information can be received from there.

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