Income Tax Act Section 206AB - TDS will increase!
Posted on: 12/Mar/2021 3:05:54 PM
When the budget for the financial year 2021-22 was presented, there were no special concessional features for the middle-income group of citizens and the monthly salary-earners!
There were some announcements for senior citizens above 75 years of age. They have been given exemption in filing their Income Tax Returns.
It is a fact that a large section of the citizens files their annual Income Tax Returns. In the 2121-22 financial year income/expense plans, the central government had made strong arrangements for this category. The IT returns filing procedures and regulations have been simplified for the monthly salaried class! Henceforth, the monthly-salaried class files their Income Tax returns, they would not encounter any issues/difficulties.
These modifications set by the central government will be effective from 1st April 2021.
It is rather essential that all citizens filing Income Tax returns MUST be aware of the above-mentioned changes:
For the citizens filing their individual annual Income Tax returns, the procedure for this has been simplified to be effective from 1st April 2021.
LTC (Leave Travel Concession) has been mentioned in the 2021 budget. THIS PERTAINS TO THOSE CITIZENS WHO COULD NOT AVAIL THE LTC CONCESSIONS LAST YEAR EXCLUSIVELY DUE TO THE RAGING CORONAVIRUS PANDEMIC WHICH CONSTRAINED THE CENTRAL & STATE GOVERNMENTS TO IMPOSE LOCKDOWN CONDITIONS INCLUDING PREVENTING TRAVEL! As such, citizens could not undertake any travel. So, they could not avail the benefits of LTC. In this scenario, the central government has extended the time �period on this issue!
Senior citizens, above 76 years of age, need not file their Income Tax Returns. This concession was given to those citizens relying on the pension and the Fixed Deposit Interests for their subsistence.
For those who failed to file their Income Tax returns, especially the trading community, the central government has made the rules further stringent! For this purpose, the Central Government has set up Section 206 arrangement. As per this, if an individual fails to file his/her Income Tax Returns, TDS (Tax Deducted at Source) will be doubled from 1st April 2021.
As per the revised rules, TDS (Tax Deducted at Source) will increase! Form 1st April, TDS & TCL Rations will be 10-20%. Presently, this is generally kept at 5-10%, As such; the government will collect TDS by double from those citizens who failed to file their annual Income Tax Returns!
