If you are also one of those people who have not filed Income Tax Return (ITR) for the financial year 2020-21, then there is important news for you. Such people have joined the list of non-filers. Such people will have to face higher TDS deduction. The Central Board of Direct Taxes (CBDT) has issued notification under sections 206AB and 206CCA of the Income Tax Act 1961 in respect of non-filers of income tax returns.
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What was said in the notification?
Any income tax payer who has not filed ITR in the two assessment years preceding the previous year. Deduction or collection of tax is necessary from such people. Let us tell you, the date of filing of return of these people under sub-section (1) of section 139 has expired.
No new name has been included in this list for the financial year 2022-23. Also, if an eligible person files income tax return for assessment year 2021-22 in financial year 2022-23, his name will be removed from the list.
Also, the provisions of section 206AB shall also not apply to transfer of virtual digital assets of an individual or Hindu undivided family. whose turnover shall not exceed rupees one crore in the case of business carried on by him and rupees 50 lakh in the case of a profession.
What does section 206AB and 206CCA say
Under the rule of section 206AB, such people who have not filed income tax return, such people can be charged more TDS under payment or collection.
Excess TCS will be charged for taking money from the buyer under section 206CCA.