Updated Feb 20, 2021 | 15:25 IST
Starting July 1, 2021, the penal TDS and TCS rates are 10-20 per cent, as against 5-10 percent normally Uncertainties around how Budget 2021 TDS rules will be implemented
New Delhi: Budget 2021 has laid out stringent norms for those not filing tax returns. So, if you have not been filing your income tax returns, you have to pay a higher tax deducted at source (TDS). Even the Tax collected at Source (TCS) will increase for those who do not file their income tax returns. Starting July 1, 2021, the penal TDS and TCS rates are 10-20 per cent, as against 5-10 percent normally.
Here’s what the budget did not do for taxpayers, home buyers, pension funds, job market
SECTIONS
Here’s what the budget did not do for taxpayers, home buyers, pension funds, job marketBy
Share
Reuters
Finance Minister Nirmala Sitharaman in her third budget did not levy any tax such as corona cess or surcharge etc on higher income groups but did not give any tax relief to the small taxpayers which was widely expected. Further, it was expected that tax sops may be given to the home buyers to give a boost to the real estate sector or deduction for covid-related expenses.
Synopsis
The deadline of March 31 for voluntarily filing of ITR (also the deadline for filing belated ITR) is proposed to be shifted forward to Dec 31 of the assessment year. This means that tax payers get 3 months less to file belated, revised ITRs which is the last chance to file an ITR voluntarily.
Getty Images
The deadline for filing belated, revised ITR is proposed to be reduced by three months in Budget 2021 from March 31 of the relevant assessment year to Dec 31 of the assessment year. As per the proposal, this means that the last date for voluntarily filing the ITR for the current financial year, i.e., FY 2020-21 will be Dec 31, 2021. Normally, income tax returns for a financial year have to be filed by July 31 of the following financial year (called the assessment year). Currently, belated and revised ITRs can be filed voluntarily after the normal deadline, up to March 31 of the assessment year. If the March deadline is missed then the taxpayer cannot voluntarily file his
Synopsis
These stranded NRIs had been given relaxation in residency criteria for income tax purposes for FY 2019-20. NRIs were seeking relaxation because the rules for determining the residency for an NRI have changed from FY 2020-21.
Getty Images
Non-resident Indians (NRIs) stuck in India due to the coronavirus pandemic have not been given any relaxation in residency criteria for FY 2020-21 by Budget 2021. Such individuals have been demanding relief under the residency criteria because this may impact the taxation of the global income of the NRIs.
These stranded NRIs had been given relaxation in residency criteria for income tax purposes for FY 2019-20. NRIs were seeking relaxation because the rules for determining the residency for an NRI have changed from FY 2020-21.
Synopsis
Effectively this means that if an individual files ITR for FY 2019-20 by July 31, 2020, then the income tax department has time till March 31, 2022 to process and send the intimation notice to the taxpayer as per current laws. However, as per the budget proposals, the tax department will now be required to process such ITR by December 31, 2021.
Getty Images
Budget 2021 has proposed to reduce the time allowed to the income tax department to process income tax returns (ITR) by three months. As per the budget proposals, the time limit for sending intimation notice under section 143(1) of the Income-tax Act, 1961 is proposed to be reduced from one year to nine months from the end of the financial year in which the return was filed. This notice is normally sent to confirm to the tax payer that his/her return has been processed. The notice states if there is any tax demand from the tax payer or any refund due to him/her. If any refund is due it will be issued only if it is refl