To test whether or not a taxpayer will be eligible to pay Tax Deducted at Source (TDS) at increased charges from subsequent month, the Income Tax division has launched a brand new performance on the tax portal. The finance ministry launched a brand new part 206AB within the Budget 2021 to deduct TDS at increased charges for sure non-filers. If a taxpayer has not filed TDS within the final two years and combination of TDS exceeds Rs 50,000 in annually, the Income Tax division will cost extra whereas submitting the earnings tax returns (ITR) from July 1. The charge of TDS will be both twice the speed specified underneath the related part or provision or 5 per cent, whichever is increased.
Now, the tax collector or tax deductor has to test whether or not an individual is eligible to pay TDS at increased charge from July. “This can lead to additional compliance burden on such tax deductor or tax collector,” the Central Board of Direct Taxes (CBDT) said in a statement. To ease the burden, the regulator has issued a new functionality “Compliance check for Sections 206AB & 206CCA”. “The tax deductor or the collector can feed the only PAN (PAN search) or a number of PANs (bulk search) of the deductee or collectee and might get a response from the performance if such deductee or collectee is a specified particular person,” the CBDT mentioned. This functionality is made available through reporting portal of the Income-tax department, it further added.
For single PAN Search, the response will be visible on the screem. The tax department will allow the deductors to download the result in the PDF format. For bulk search of PAN details, the result will be available as downloadable file.
News18.com first reported on June 10 that earnings tax division will have new facility to test compliance norms for Section 206AB.”It is necessary to observe that to test GSTR compliance the GST portal already has this sort of characteristic. Now for ITR, the earnings tax portal can also be anticipated to have this characteristic,” Vivek Jalan, partner, Tax Connect Advisory Services LLP told News18.com.
The tax department has prepared a list as on the start of the financial year 2021-22, taking previous years 20 18-19 and 2019-20 previous years. The list contains name of taxpayers who did not file return of income for both assessment years 2019-20 and 2020-21 and have aggregate of TDS of Rs 50,000 or more in each of these two previous years.
“The deductor or the collector may check the PAN in the functionality at the beginning of the financial year and then he is not required to check the PAN of non-specified person during that financial year,” mentioned CBDT.
The tax division will not add any new names within the listing in the course of the monetary 12 months 2021-22. “This is a taxpayer pleasant measure to cut back the burden on tax deductor a collector of checking PANs of non-specified particular person greater than as soon as in the course of the monetary 12 months,” the regular said.
“A fresh list will be prepared at the start of each financial year following all the norms mentioned by CBDT. For example, at the beginning of the financial year 2022-23 a fresh list would be prepared with previous years 2019-20 and 2020-21 as the two relevant previous years. Then, no name would be added to the list of specified persons during the financial year and only Dame would be removed,” it added.
The identical course of will be adopted to put together a listing for Tax Collected at Sources (TCS). “It could also be famous that as per the provisos of sections 206AB & 206CCA of the Act, the required individuals shall not embrace a non-resident wbo doesn’t have a penmanent institution in India,” CBDT talked about.
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