Have you filed ITR for FY 2020-21 if not Additional TCS and TDS may be deducted from April 1st

Have you submitted your Income Tax Return (ITR) for the financial year 2020-21? If this is not done, more TDS and TCS will be deducted beginning April 1st. In fact, the government has altered the laws regulating TDS and TCS. According to this, if you have not submitted an ITR for any financial year, TDS and TCS would be deducted at a higher rate from the following Financial year if the TDS is Rs.50,000 or more.

What will be the amount limit for higher TDS?

TDS or TCS will be levied at a higher rate on the indicated source of income. This comprises interest from recurring and fixed deposits, dividends, annuity payments, and so on. In this regard, a declaration was made in last year’s budget. It was stated in this that if a taxpayer did not submit ITR in the financial years 2018-19 and 2019-20, he will have to deduct extra TDS and TDS on the income of Rs.50,000 from interest income, dividend income, and annuity payment.

What was the amendment in the rule in Budget 2022?

In 2022, the above-mentioned law was revised to make the budget more stringent. It stipulates that starting in the financial year 2022-23, if a taxpayer has filed ITR for the financial year 2019-20 and has not filed ITR for the financial year 2020-21, the total TDS must be Rs.50,000 or more. If this occurs, extra TDS and TCS will be deducted from his salary from April 1, 2022.

Rule was recalled by the Income Tax Department

This has also been tweeted about by the Income Tax Department. It has been said that if an ITR is not filed, extra TDS will be charged beginning with the next financial year. The deadline to file an ITR for the financial year 2020-21 is March 31, 2022. So don’t wait till the last minute.

CBDT issued circular last year

In June 2021, the Central Board of Direct Taxes (CBDT) released a circular. It was explained in this document how taxpayers will be identified in order to deduct more TDS and TCS. TCS and TDS are deducted by financial institutions such as banks. They must enter the individual’s PAN on the Income Tax e-filing portal. They would know whether to deduct more TDS or TCS from that person as a result of this.