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What is new rule for TDS? July 03 2021What is new rule for TDS?

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New Rule for TDS 

From July 1, a number of changes for bank account holders and taxpayers took effect. Non-filers of income tax returns for the previous two fiscal years will face a higher tax deducted at source (TDS) and tax collected at source (TCS) rate from July 1 if the tax deduction was Rs 50,000 or more in each of those two years.

The Central Board of Direct Taxes (CBDT) has released a new tool called "Compliance Check for Sections 206AB & 206CCA" to help with this compliance burden and help tax diductors keep track on non-filers. This feature is currently available through the income tax department's reporting site (https://report.insight.gov.in)," according to the CBDT.

How does this new tool function?

i) Single PAN search: A tax diductor or collector can enter the deductee's or collectee's single PAN (PAN search) into the portal and receive a response from the functionality whether the deductee or collectee is a specified person. The result of a PAN search will be displayed on the screen and can be downloaded in PDF format.

Bulk search: The tax deductor or collector can submit several PANs (bulk search) of the deductee or coIIectee to the portal and obtain a result. The CBDT noted that the response for bulk searches would be in the form of a downloaded file that could be saved for future reference.

Only at the start of the financial year will TDS deductors and TCS collectors be needed to validate the functionality of the PAN of the vendor from whom TDS or TCS is to be deducted or collected.

The tax department has compiled a list of taxpayers who did not file income tax returns at the start of the fiscal year 2021-22, based on the previous fiscal years 2018-19 and 2019-20.

Following the second wave of Covid-19, CBDT recently extended certain income tax dates to provide some assistance. Taxpayers now have until July 15 to register their TDS for the final quarter of fiscal year 2020-21.

New TDS rules 

TDS rates will be higher than below limits.

Double the rate set forth in the relevant provision of the Income Tax Act or.

Double the rates in force or rate,

At a rate of 5% per year.

Where does the new TDS rules do not apply?

The provisions of this section will not apply if your total TDS deduction in each prior year was less than Rs 50,000 or if you have filed your income tax return on a regular basis for the previous two years.

Furthermore, if TDS is to be deducted on salary income (192), lottery income (194B), horse race income (194BB), PF income (192A), trust income (194LBC), and cash withdrawals (194N), the rules of this section are not applicable. Furthermore, a higher TDS rate does not apply to NRIs who do not have a permanent establishment in India.

According to Budget 2021, non-filers of income tax returns for the past two fiscal years will face higher TDS and TCS rates if the tax deduction was Rs 50,000 or more in each of those two years.

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Prevent Unauthorized Transactions in your demat and trading account --> Update your Mobile Number/Email id with your Depository Participant and Stock Broker. Receive alerts on your Registered Mobile for all debit and other important transactions in your demat/trading account directly from CDSL and Stock Exchanges on the same day.........issued in the interest of investors...

1. Stock Brokers can accept securities as margin from clients only by way of pledge in the depository system w.e.f. September 1, 2020.

2. Update your Mobile Number & Email Id with your Stock Broker/ Depository Participant and receive OTP directly from Depository on your Email Id and/ or Mobile Number to create pledge.

3. Pay 20% upfront margin of the transaction value to trade in cash market segment.

4. Investors may please refer to the Exchange's Frequently Asked Questions (FAQs) issued by NSE vide. Circular No. NSE/INSP/45191 dated: July 31, 2020 and NSE/INSP/45534 and BSE vide Notice No. 20200731-7, dated: July 31, 2020 and 20200831- 45 dated: August 31, 2020 and dated: August 31, 2020 and other guidelines issued from time to time in this regard.

5. Check your Securities/ MF/ Bonds in the Consolidated Account Statement issued by NSDL/ CDSL every month.

"As per the directives of CDSL and esteemed Exchanges, it has been made mandatory for every client to furnish their latest KYC details viz. Valid Mobile No., Email- Id & Income range on or before 31.05.2021 else your Account will be marked as Non Compliant and will be Freezed till the compliance of such requirement."
REGISTRATION NOS:

INDIRA SECURITIES PVT.LTD. (SEBI REG.NO.):NSE TMID: 12866, BSE TMID: 663, CDSL DPID: 17000 SEBI REG. NO.: INZ000188930, MCX TM ID: 56470, NCDEX TM ID: 01277, CDSL REG. NO.: IN-DP-90-2015, CIN : U67120MH1996PTC160201
INDIRA COMMODITIES PVT. LTD. CIN : U65921MH1995PTC089399

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"INVESTMENT IN SECURITIES MARKET ARE SUBJECT TO MARKET RISKS, READ ALL THE RELATED DOCUMENTS CAREFULLY BEFORE INVESTING."

INVESTORS GRIEVANCE

Manoj Bhandari. Email: compliance@indiratrade.com. Call : 0731-4797275

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