Income Tax Department is going to implement two new sections from July 1. Due to a section, a provision of 0.10 percent Tax Deduction at Source (TDS) will have to be made on purchases from a businessman above 50 lakhs. On the other hand, due to the second section, if the seller does not file the income tax return for two years, then this TDS will become five percent. In a way, it will become 50 times of the previous position.
Sections 194Q and 206AB added in the Income Tax Act from Budget 2021 are coming into force from July 1. Nadeem Uddin, president of Tax CHR Bar Association and author of 44 books on various legal subjects including taxation, has told that in section 194Q, if the turnover of a businessman in the previous year is 10 crores or more, then he can earn 50 crores from a businessman in this financial year. Will buy goods above Rs. TDS of 0.10 per cent will be deducted at the time of payment on all sales above Rs 50 lakh. However, this tax rate will become 50 times as soon as section 206AB is implemented.
According to Nadeem Uddin, if a seller has not filed income tax returns for the last two years or his tax collection at source (TCS) of TDS in the previous financial year is more than Rs 50 thousand, then TDS will be deducted at the rate of five percent. Will go
Turnover and return both have to be taken care of
Tax CHR Bar Association President Nadeem Uddin has said that there may be some trouble for the businessmen whose turnover in the last year is above Rs 10 crore. Actually, one they have to remember that purchases from a trader are happening above Rs 50 lakh. Second, also remember whether he had filed the return for the last two years or not? Because they have to deduct TDS accordingly.