After the implementation of the Finance Act 2021, important changes have been made in TDS. These changes will be enforced from July 1.
TDS rules for buying goods will change from July 1. For those who do not file income tax return, double the TDS amount would be cut. So let’s take a look at key changes that will come into effect from next month.
Section 194 Q has recently been added to the tax rules. It is related to the tax on pre-purchase price of goods. Under this rule, TDS of 0.10% will be deducted on business purchases above Rs 50 lakh.
June 30 is the last date to link your PAN card with Aadhaar. Those who don’t get it linked can be fined heavily from July 1.
Investors have received messages from select companies on double TDS on dividend income whose Aadhaar number is not linked with Permanent Account Number (PAN).
The new IT portal has the facility to verify this by entering the PAN details. If the returns have not been filed, the deducted TDS will be double the existing TDS rate or charged at 5%, whichever is higher.
