Taxpayers who have not filed their income tax returns for two years will be deducted double the Tax Deduction at Source (TDS) from July 1. This system will be applicable to businessmen, commission agents, contractors, professionals, but there will be relief for the salaried people. This section will not apply to them.
Section 206AB of Income Tax will come into force from July 1. At the time of deducting TDS of businessmen, contractors, commission agents who have not filed returns for two years, TDS will be deducted at twice the rate of tax. There is one more thing in this that in any way it will not be below five percent, that is, under section 194Q, 0.1 percent tax is deducted but it is doubled to 0.2 percent. Therefore, 5% tax will be deducted in it.
According to tax consultants, if it is being made less than five percent, then it will become five percent. In this, five percent or double, whichever is higher, will be applicable. In cases where 10 per cent TDS is deducted, it will be 20 per cent. Exemption is available in respect of salary under 206AB. Apart from this, there will be no deduction on the accumulated amount of Provident Fund. The amount won in lottery or crossword competition, prizes received in horse race will be free from this.
This rule is coming into force from 1st July. Under this, those who have not filed returns for two years, their TDS will be deducted twice. In this, double or five percent whichever is higher, it will be deducted. Salary, provident fund money has been kept free. -Shivam Omar, Chartered Accountant.
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