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.