Income tax alert: Now pay more if you miss ITR filing for one year

In key direct tax proposals in Union Budget 2022, the government has proposed to make provisions related to deduction or collection at higher rates for non-filers more stringent.

Non-Income Tax return (ITR) filers will have to pay higher Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) if they don't file ITR for one year.

In key direct tax proposals in Union Budget 2022, the government has proposed to make provisions related to deduction or collection at higher rates for non-filers more stringent.

STRINGENT MEASURE NON ITR FILERS

As part of measures to widen and deepen the tax base, the government has proposed to make provisions relating to deduction or collection at higher rates for non-filers more stringent by reducing the time period for which no return has been filed from two years to one year.

Currently, if an individual did not file ITR for two years, and the TDS and TCS in each of those assessment years amount to more than Rs 50,000, then that individual is liable to pay higher rates of TDS and TCS.

Now that tenure has been reduced from two years to one year.

Budget Highlights :Key Direct Tax proposals in Union Budget 2022.Provisions relating to deduction/collection at higher rates for non-filers are proposed to be made more stringent. #AatmaNirbharBharatKaBudget #Budget2022 pic.twitter.com/YpACGXDCQP