Good news for certain non-filers of Income Tax Returns (ITRs)! Recent changes to the Income Tax Act provide relief for those not obligated to file. Let’s break down what this means for you.
Previously, Sections 206AB and 206CCA mandated higher tax deductions at source (TDS) and tax collections at source (TCS) for individuals who hadn’t filed their ITRs. However, the Finance Act of 2023 amended these sections to exclude specific non-filers.
Individuals who are not required to file an ITR for the relevant assessment year and who are notified by the Central Government are exempt from the higher TDS and TCS provisions.
In a recent notification (46/2024 Dated 27.05.2024), the Central Government has excluded the Reserve Bank of India from the application of Sections 206AB and 206CCA. This means the Reserve Bank will not face higher TDS or TCS even if it hasn’t filed an ITR
Official Notification:
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