Dear Experts
please confirm what are the conditions to deduct TDS on higher rates from non ITR fillers and what are the consequences if we are not deducting TDS at higher rates
Non-filers are persons who have not filed their returns of income for two years preceding the year of deduction where returns of income are due, and if TDS deducted from their income has been ₹50,000 or more in each of these 2 years. On 1 July 2021, the applicable years would be the financial years 2018-19 and 2019-20, since the tax returns for the financial year 2020-21 would be due only by 31 December 2021 or late
In last year’s budget, a new provision was inserted to provide for a higher tax deduction at source (TDS) rate from payments to persons who have not filed their returns of income (non-filers). The TDS to be applied in such cases is the higher of twice the normal applicable TDS rate or 5%.
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