PROCEDURES FOR SECTION 206AB AND 206CCA COMPLIANCE CHECK FUNCTIONALITY
The Income Tax Department has added a new feature to its website to assist businesses in maintaining compliance with the new TDS (tax deducted at source) and TCS (tax collected at source) rules that take effect on July 1. The Finance Act of 2021 added sections 206AB and 206 CCA to the Income Tax Act, establishing a specific provision for non-filers to deduct tax at source.
‘Compliance Check for Sections 206AB and 206CCA’ can be performed. In the case of a “specified person,” new sections impose a tax deduction or a greater rate of tax collection. The higher rate is equal to twice the statutory rate or 5%, whichever is higher. A specified person is someone who hasn’t filed a return in the two years leading up to the year in which tax is due to be deducted or collected. In each of the previous two years, the total TDS/TCS was less than 50,000.
The tax deductor or collector can now use new functionality to feed a single or multiple PAN of the deductee or collectee, and the functionality will respond if the deductee or collectee is a designated person.
In the event of a change or late filing of the TDS/ TCS, names may be removed from the specified person list. A scenario in which such revisions result in surpassing the 50,000 limits and, as a result, the inclusion of a non-specified person in the specified person list is also feasible.
THE DEADLINE FOR VIVAD SE VISHWAS PAYMENTS HAS BEEN EXTENDED
The union administration said on Friday that certain tax compliance deadlines, including the time to invest in a residential house for tax deduction and payments under the dispute settlement programme, will be extended.
The Vivad Se Vishwas direct tax dispute settlement scheme’s payment deadline has been extended by two months, to August 31. Taxpayers have until October 31 to make payments, but they will incur additional interest.
For the 2019-20 and subsequent years, the amount paid by an employer for medical treatment of an employee or a person on account of coronavirus will not be taxed in the hands of the employee/beneficiary. Furthermore, the deadline for linking your PAN to your Aadhar card has been extended for another three months, to September 30.
The deadline for businesses to provide employees with a TDS certificate in Form 16 has also been extended to July 31, 2021, from July 15, 2021. The deadline for filing TDS statements has been extended until July 15. It is possible to issue tax deduction certificates until July 31. Institutional registration has been extended until August 31st, with the option to remove claims from the settlement commission.