Last Updated on June 22, 2021 by Harshad Patel
The government has made the system very strict for those who file income tax returns. More TDS and TCS will be levied on such people from July 1. To identify such people, the income tax department has prepared a new system, from which higher taxes will be levied from July 1.
Further TDS / TCS will be charged for non-filing of return
A provision was included in the 2021 budget, under which those who have not filed income tax for two financial years will be charged more TDS (source on tax deduction) if the deduction in these two years has been Rs 50,000 or more.
The CBDT issued a circular
The Central Board of Direct Taxes (CBDT) has also issued a circular in this regard, stating that those who do not file returns under sections 206AB and 206CCA (206AB and 206 CCA) will be charged more TDS / TCS. The IT department tweeted that to reduce the compliance burden of TDS / TCS, a new system has been launched for compliance checks under Section 206AB and 206 CCA.
The new system (compliance) will reduce the burden of compliance
The CBDT said the TDS deductor or TCS collector may have to work hard to find out whether the deductor or the collector is the same ‘fixed person’, which could put more burden on them. That is why this new system can reduce this burden on them.
All the information will come as soon as you enter the page number
Under the new system, the TDS Deductor or TCS Collector will be able to see whether the Deductor or the Collective is the same ‘fixed person’ by entering the page number of the Deductible or the Collective in the new system. The Income Tax Department has prepared a list of ‘Specific Persons’ for the last two years 2018-19 and 2019-20 at the beginning of the financial year 2021-22. This list contains the names of taxpayers who have not filed income tax returns in both the years 2019-20 and 2020-21. And in these last two years whose TDS, TCS is different Rs 50,0000 or more.
What is TDS?
TDS is deducted from your source of income i.e. salary. TDS is a portion of income tax, which is paid by the taxpayer. It is settled by filing an income tax return (ITR). The salary that comes in the hands of every salaried class comes only after deducting TDS. Your company is cutting TDS. It is called a deductible and you have deducted TDS hence you are called a deductible. Your company pays this TDS to the government. TDS deductions include your salary, interest earned on investments, business fees, commissions and brokerage.
What is TCS
TCS is paid by the seller merchant, seller, shopkeeper. That is, when a seller sells a goods, tax is levied from the buyer, it is called TCS, it is the seller’s responsibility to deposit this TCS. Only sellers of certain types of items collect it. These items include wood, debris, minerals, etc. This type of tax is deducted only when the payment limit is exceeded.