If you did not file ITR for FY.2018-19 onwards TDS will double

 

With the new TDS rule, every time you make a payment, you must ask if the receiver has filed tax returns in last two years

• If you did not file your tax returns in 2018-19, you may be stuck in pickle this season and have to pay double the applicable rate or 5%, whichever is higher.
• This rule shall come into force starting 1 July 2021.
• Deductors will now have to ask for proof of ITR submission for the last two years, increasing the burden of compliance,