There will be certain changes in the Income Tax rule starting from April 1. As announced by Finance Minister Nirmala Sitharaman announced in Budget 2021, the rule for TDS (Tax Deducted at Source) will get changed from April 1st, 2021.
According to the announcement, this will be the change. It is regarding the filing of ITR. If a citizen fails to file the income tax return (ITR), he/she will face a double TDS interest rate on their bank deposit book. Every person needs to file the ITR. Even when a person does not fall in the income tax outgo slab, they will have to file the ITR or the TDS rate will be double.
The investment expert Jitendra Solanki shared his thoughts on the TDS and TCS changes and explained a few things. He said that "In order to discourage the practice of not filing the income tax returns by the persons in whose case the substantial amount of tax has been deducted or collected, the union budget proposal says that a person in whose case TDS/TCS of Rs 50,000 or more has been made for the past two years and who has not filed ITR, the rate of TDS/TCS shall be at the double of the specified rate or 5 per cent, whichever is higher.”
He further added that “This provision will not be applied for the transactions where the full amount of tax is required to be deducted. This includes salary, lottery and others.”
Speaking on what a senior citizen is to do, the rule will not be applicable to them. Senior citizens above the age of 75 who are living on a pension, will not have to file ITR. But if there are other sources of income, then the senior citizen will have to file an ITR. Otherwise, they will face a double TDS rate.