News & Media 25th Apr 2022

Govt seeks to grow tax base, makes filing must for TDS/TCS above Rs 25,000

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Seeking to expand the taxpayer base, the government has widened the scope for filing returns even if a person’s income is below the taxable limit. The new rules cover those whose aggregate tax deducted at source (TDS) or tax collected at source (TCS) during a fiscal year is Rs 25,000 or more. In the case of senior citizens, the aggregate of Rs 50,000 will apply. The new amendment, which came into force on April 21, has been introduced to detect discrepancies between the expenses and incomes of people who do not have to file tax returns.

Against this backdrop, Mitesh Jain, Partner, Economic Laws Practice (ELP) has been quoted by Business Standard in their article titled ‘Govt seeks to grow tax base, makes filing must for TDS/TCS above Rs 25,000’. He says, “It appears the rule has been introduced to strengthen compliance and ensure that the persons meeting the above thresholds file returns, irrespective of their income.”

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