New Delhi, June 30 (SocialNews.XYZ) In a big relief to the taxpayers, the Central Board of Direct Taxes (CBDT) has decided not to frequently assess the tax filing status of individuals and companies, and complete the process of preparing the list of non-filers only once at the beginning of an assessment year.
The board, which has issued a new functionality to assess the non-filers, has decided that the tax deductor or collector would need to check the functionality only once at the beginning of a financial year to check on the status of a specified person (non-filer).
The list that the functionality will prepare will contain the names of the taxpayers who did not file the return of income for both the relevant pervious years (i.e. FY 2018-19 and FY 2019-20) and that the aggregate of TDS/TCS exceeds Rs 50,000 in each of these previous years. The list would be drawn afresh at the start of each assssment year.
Also, since there will be no addition to the list of specified persons during the financial year, and it is not necessary to check the PAN of a non-specified person during that FY, the measure would speed-up the compliance process and prevent taxpayers from unnecessary inconvenience during the middle of the year over doubts that the taxmen may have.
As part of the efforts to ease the compliance burden of taxpayers, the CBDT had issued a new functionality earlier this month that would reveal whether a person is liable to pay taxes at a higher rate for non- filing of returns with just a click of the button.
The new functionality - Compliance Check for Sections 206AB & 206CCA -- is operational now and is aiming to reduce the compliance burden by putting out the need to tax a person at a higher rate by just feeding his/her PAN details.
The Finance Act, 2021 inserted two new sections -- 206AB and 206CCA -- to the Income-Tax Act, 1961, which takes effect from July 1, 2021.
These sections mandate tax deduction or tax collection at higher rate in case of certain non-filers (specified persons). Higher rate is twice the prescribed rate or 5 per cent, whichever is higher.
Source: IANS
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