new Delhi. Finance Minister Nirmala Sitharaman presented the budget for the financial year 2021-22 on 1 February. In this budget, the Finance Minister has tried to increase the number of taxpayers and has added some provisions regarding this. In order to encourage the filing of Income Tax Return, the Central Government has tightened TDS rules for those who do not file ITR. For this, the government has added section 206AB to the Income Tax Act.

TCS even more if ITR is not filed
Now, according to the new rules, people who have not filed income tax returns, will also be taxed more at collection (source). For this, the government has added section 206CCA to the Income Tax Act.

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Failure to file ITR may lead to double TDS. As per the provision, if a person in whose case TDS / TCS of Rs. 50 thousand or more has been made for the last two years and who has not filed income tax return, the rate of TDS / TCS will be double the specified rate or 5 percent, whichever is higher.

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However, this provision will not apply where the tax needs to be deducted under the salary income, lottery etc., the amount won in horse racing.

At the same time, the government is going to reduce the pressure on the elderly over 75 years. Those older than 75 years, whose source of income is only pension and interest, they will no longer have to file income tax returns.

Tags: Budget Budget 2021 FY 2021-22 Income Tax Return ITR nirmala sitharaman TCS TDS