The Income Tax Department has been changing the rules since July 1, with TDS up to 50 times if no return is filed for two years

The Income Tax Department will implement two new sections from July 1. Due to a division, a tax cut of 0.10 per cent is required at the source (TDS) when buying from more than 50 lakh entrepreneurs. On the other hand, because of the second category, if the seller does not file an income tax return for two years, this TDS becomes five percent. In a way, it becomes 50 times the previous position.

Sections 194Q and 206 AB, which are included in the Income Tax Act from Budget 2021, are effective July 1. Nadeem Dheedin, president of the Tax CHR Bar Association and author of 44 books on various legal issues, including tax, says in Section 194Q, if a businessman’s turnover in the previous year was 10 crores or more, he could earn 50 crores. By an entrepreneur this financial year. Rs. TDS is deducted at 0.10 per cent of all sales payments of more than Rs 50 lakh. However, this tax rate will increase by 50 times as soon as Section 206A comes into force.

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According to Nadeem Dudheen, if the seller has not filed income tax returns for the last two years or if the tax collection in TDS base (TCS) exceeds Rs 50,000 in the previous financial year, the TDS will be deducted by 5%

Both the transaction and the return must be looked after

Taxpayer CHR Bar Association president Nadeem Dheedin said businessmen who made more than Rs 10 crore in the last year could be a bit troubled. In fact, they should keep in mind that purchases from a trader are going for more than Rs 50 lakh. Secondly, also remember whether or not he has filed a return for the past two years? Because they have to cut the TDS accordingly.

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