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The government has extended the due date for filing income tax returns for assessment year 2021-22 by two months, to September 30, 2021 from the existing deadline of July 31, 2021, while giving extension to tax audit and 12 compliance deadlines for FY 21 to provide relief to taxpayers due to Covid pandemic. https://www.instagram.com/p/CQnJpKELHt7/?utm_medium=tumblr

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#Robber's Cave

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Higher rate of TDS or TCS in case of non-filers of Income-tax Return [Section 206AB and Section 206CCA]

Section 206AB provides for deduction of tax at higher rates if tax is deductible under any provision on any sum or income or the amount paid, or payable or credited, by a person to a specified person. However, this provision is not applicable where tax is deductible under the following provisions:

Section 192: TDS on Salary;

Section 192A: TDS on withdrawal from EPF;

Section 194B: TDS on winning from lotteries, crossword puzzles, etc.

Section 194BB: TDS on winning from racehorses;

Section 194LBC: TDS on income in respect of investment in Securitization Trust;

Section 194N: TDS on cash withdrawal.

Specified person means a person:

Who has not filed the return of income for both of the two assessment years relevant to the previous years immediately before the previous year in which tax is required to be deducted;

The due date to file such return of income, as prescribed under Section 139(1), has expired; and

The aggregate amount of tax deducted and collected at source is Rs. 50,000 or more in each of these two previous years.

However, this provision is not applicable in case of a non-resident who does not have a permanent establishment in India.

Deductor shall deduct tax under this provision at the higher of the following rates:

Twice the rate specified in the relevant provision of the Act;

Twice the rate or rates in force; or

5%.

However, where both the provision of this section and Section 206AA are applicable, that is, the deductee has neither furnished his PAN to the deductor nor has he furnished his return of income for the specified periods, the deductor shall deduct tax at the rates provided in this section or in section 206AA, whichever is higher.

A similar Section 206CCA has been inserted to provide that the collector shall collect tax at a higher rate if the collectee does not file the return for the specified period. The collector shall collect tax under this provision at the higher of the following rates:

Twice the rate specified in the relevant provision of the Act; or

5%.

However, where both the provision of this section and Section 206CC are applicable, the collector shall collect tax at rates provided in this section or in section 206CC, whichever is higher.

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New TDS provisions on Purchase of Goods [Section 194Q]

A buyer shall deduct tax under this provision from the value of goods purchased by it if the following conditions are satisfied:

His total sales, gross receipts, or turnover from the business carried on by him exceeds Rs. 10 crores during the financial year immediately preceding the financial year in which he purchases the goods,

There is a purchase of goods from a resident person;

Value or aggregate value of Goods purchased exceeds Rs. 50 lakhs in any previous year;

The buyer should not be on the list of persons excluded from the provision for deduction of tax; and

No tax is deductible or collectible under any other provision except Section 206C(1H).

Buyer shall deduct tax at the rate of 0.1% of the purchase value exceeding Rs. 50 lakhs at the time of credit of such sum to the account of the seller or at the time of payment thereof by any mode, whichever is earlier. The tax shall be deducted even if the sum is credited to the ‘Suspense Account’.