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New Tax Deducted At Source (TDS) Rule 2021

Tax Deducted At Source (TDS):

A new Tax Deducted at Source (TDS) rule is coming into effect from July 1, 2021.

  • Under the new rules, non-filer of income tax for past two financial years will be subjected to higher taxation.
  • TDS or TCS will be charged at double rate specified in relevant provision of Income Tax Act or 5 per cent.
  • Provisions of this section will be applicable to TDS deductions on resident payments including shareholder dividends and service payment to vendors rent.
  • However, it will not be applicable on salary, winnings from lottery or crossword, horse race, trust income and cash withdrawals.
  • Such non-filers will bear higher tax deducted at source (TDS) and tax collected at source (TCS).
  • Higher tax will be levied on them if such tax deduction will amount to Rs 50,000 or more in each of past two years.

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