Fire your tax related queries and i would get it solved!!!

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"The finance minister has proposed higher TDS (tax deducted at source) or TCS (tax collected at source) rates in budget 2021 in order to make more people file income tax returns (ITR). New Sections 206AB and 206CCA had been proposed in the budget as a special provision for the deduction of higher rates of TDS and TCS, respectively for the non-filers of an income tax return"

Please post some details on this new rule for TDS.
and
- To whom, it is applicable (even applicable to people earning below 10000 per month)
- for Bank FDs and on small savings ( say even on 9/10K interest per year from these instruments)
- applicable to housewives (with no other income or income below 1 lakhs/ year) senior and super senior ladies etc
https://taxguru.in/income-tax/analysis-section-206ab-section-206cca-income-tax-act-1961.html
https://www.taxmann.com/budget-2021-22/budget-story/171/complex-theorems-of-tds-and-tcs

The above may help. The second article specifically gives example of super senior citizen who is not required to file his IT return as his income is below Rs 5 Lakhs.

The section provides that the "specified person" means a person who has not filed the returns of income for both of the two assessment years relevant to the two previous years immediately prior to the previous year in which tax is required to be deducted, for which the time limit of filing return of income under section 139(1) has expired; and the aggregate of tax deducted at source and tax collected at source in his case is Rs. 50,000 or more in each of these two previous years. However, the specified person shall not include a non-resident who does not have a permanent establishment in India. ----If the tax collected in both these previous years is less than Rs 50,000 then the person does not come under "specified person ?? and hence these sections are not applicable to such persons........This is how I interpret.


Smart_trade
 
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https://taxguru.in/income-tax/analysis-section-206ab-section-206cca-income-tax-act-1961.html
https://www.taxmann.com/budget-2021-22/budget-story/171/complex-theorems-of-tds-and-tcs

The above may help. The second article specifically gives example of super senior citizen who is not required to file his IT return as his income is below Rs 5 Lakhs.

The section provides that the "specified person" means a person who has not filed the returns of income for both of the two assessment years relevant to the two previous years immediately prior to the previous year in which tax is required to be deducted, for which the time limit of filing return of income under section 139(1) has expired; and the aggregate of tax deducted at source and tax collected at source in his case is Rs. 50,000 or more in each of these two previous years. However, the specified person shall not include a non-resident who does not have a permanent establishment in India. ----If the tax collected in both these previous years is less than Rs 50,000 then the person does not come under "specified person ?? and hence these sections are not applicable to such persons........This is how I interpret.


Smart_trade
Thanks Da
Actually I wrote my post, based on a query raised by my house maid (she thought that I am a tax expert) and I was bowled by her query.
I tried Google and read some articles by different tax experts, but didnt get any
clear explanation for the case I wrote in my post

Problem with our tax laws is, that they were never written (or to explain) in easy language, and so confuse a layman. And when one tries to get some explanation, it will create more and more confusion
 

superman

Well-Known Member
Thanks for the link. yes I will report both. One more query :

Are capital gains calculated at PAN level or at demat account level transactions. Imagine you have 2 demat accounts . In one demat account your purchased some XXX share on March 2020. And in one more demat account you purchased XXX shares in April 2021. Share price has dropped a lot since April 2021, so if I sell it in this new demat account and buy the same in first demat account - Can I claim Short term capital loss for equity ?
 

canikhil

Well-Known Member
Thanks for the link. yes I will report both. One more query :

Are capital gains calculated at PAN level or at demat account level transactions. Imagine you have 2 demat accounts . In one demat account your purchased some XXX share on March 2020. And in one more demat account you purchased XXX shares in April 2021. Share price has dropped a lot since April 2021, so if I sell it in this new demat account and buy the same in first demat account - Can I claim Short term capital loss for equity ?

As such you won't get caught. But as such capital gains are calculated on First In, First Out basis. Income-tax department does not care whether you part your shares in two different accounts. If they find out, they will consider this as a tax evasion.
 
@canikhil Sir,
Please post some explanation on applicability of Sections 206AB and 206CCA in layman language.
Please also reply for query posted.

Thanks

"The finance minister has proposed higher TDS (tax deducted at source) or TCS (tax collected at source) rates in budget 2021 in order to make more people file income tax returns (ITR). New Sections 206AB and 206CCA had been proposed in the budget as a special provision for the deduction of higher rates of TDS and TCS, respectively for the non-filers of an income tax return"

Please post some details on this new rule for TDS.
and
- To whom, it is applicable (even applicable to people earning below 10000 per month)
- for Bank FDs and on small savings ( say even on 9/10K interest per year from these instruments)
- applicable to housewives (with no other income or income below 1 lakhs/ year) senior and super senior ladies etc
 

canikhil

Well-Known Member
@canikhil Sir,
Please post some explanation on applicability of Sections 206AB and 206CCA in layman language.
Please also reply for query posted.

Thanks
Its simple:

1. if you have not filed tax return for last two years; and

2. you are in receipt of income other than salary, lotteries, horse races, etc ie you are receiving incomes such as commission, rent, brokerage, professional fee, interest etc; and

3. TDS deducted in each of the last two years is in excess of Rs 50 thousand, then

The TDS on such incomes will be effectively higher of 5% or the 2x of the applicable TDS rate.

So, lets say, you are receiving professional fee, TDS will be 20% (ie higher of (2 x 10%) or 5%). If you are a contractor (individual) who is normally
covered under 194c (TDS 1%) - the TDS rate will be 5%.

My only concern is how will the deductor comply to this!

Where it won't apply:

1. if you are earning salary, and not required to file tax return;

2. if you are a contractor or a professional or earning rental or interest income but TDS deducted is less than 50K in each of last two years.
 
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Its simple:

1. if you have not filed tax return for last two years; and

2. you are in receipt of income other than salary, lotteries, horse races, etc ie you are receiving incomes such as commission, rent, brokerage, professional fee, interest etc; and

3. TDS deducted in each of the last two years is in excess of Rs 50 thousand, then

The TDS on such incomes will be effectively higher of 5% or the 2x of the applicable TDS rate.

So, lets say, you are receiving professional fee, TDS will be 20% (ie higher of (2 x 10%) or 5%). If you are a contractor (individual) who is normally
covered under 194c (TDS 1%) - the TDS rate will be 5%.

My only concern is how will the deductor comply to this!

Where it won't apply:

1. if you are earning salary, and not required to file tax return;

2. if you are a contractor or a professional or earning rental or interest income but TDS deducted is less than 50K in each of last two years.
Thanks, for the explanation.
 

superman

Well-Known Member
Can we have pay self - assessment tax multiple time in chunks . Ex: If our tax amount due is say 50K since you missed some advanced tax payments for march , Can I pay 25K now and after 1-2 months, pay one more round of 25K and finally pay the small interest amount at the time of filing - So three self assessment tax payments :( ? Its way too difficult to calculate the 234B interest amount in advance. I want to avoid 1% monthly interest so paying it early before my tax filing which will be on Aug-Sept
 

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