Budget 2022 has tightened laws for non-income tax return filers. In the present times when the person does not furnish the ITR for the former 2 years and the TDS and TCS in the said years more than Rs 50000, an individual is subjected for TDS or TCS with the higher rates in the ongoing fiscal year. The budget 2022 with the intention to apply the mentioned provision when the ITR does not being furnished for the former 1 year rather than 2 years.
The higher TDS or TCS law was being circulated in budget 2021 and imposed from the Date 1st July 2021. More and more TDS or TCS is subjected to apply for the people who have the interest income, dividend income, annuity pensions, or additional incomes as prescribed. But the tax is deducted on salaries, provident funds, winnings from the lottery, and others. does not come under this law
“With the intent to ensure higher compliance as far as return filing is concerned, the provisions triggering higher TDS/TCS rates in case non-filers have been reduced to 1 year. This change will certainly help the FM in increasing the number of taxpayers filing tax returns every year,” a tax expert commented.
TDS or TCS rated subjected to highest applicability in the following scenario:
- a) twice the rate specified in the appropriate provision of the Act
- b) twice the rate or rates in force; or
- c) the rate of five per cent
Moreover, the government has incorporated the utility on the income tax portal to find out who has furnished the ITR for the former 2 years.
The Budget Memorandum States: In order to make the tax base effective and to push the assessee to file the return Finance Act, 2021 inserted sections 206AB and 206CCA in the Act.
The given sections are towards the special provisions for the deduction and the collection of tax at source correspondingly for the case of the mentioned individual at higher rates given in it. “Specified person” has been for the individual who does not furnish the return for these 2 assessment years where tax is needed to get deducted or collected towards which the time period for furnishing the return beneath sub-section (1) of section 139 has lapsed and the average of tax deducted at source and the tax collected at source for the case directed is Rs 50000 or exceeding that in these 2 former years. The government furnished the online utility to the assessee to find out if the individual is a specified person or not.
