Stricter Tax Rules To Follow

While the Union Budget had nothing for the common man in terms of reduction in income tax slabs or expansion of deduction limits, it tightened the noose around defaulters. “Overall, the Budget didn’t have much for the salaried taxpayers, who have been hoping for tax relief post- Covid. The changes in the Budget are directed towards improving compliance and removing tax evasion via measures related to TDS (tax deducted at source),” says Archit Gupta, founder and CEO, Cleartax.in, a tax portal.   TDS is a specified amount that is reduced when a certain payment like salary, rent, interest, commission or professional fee, is made. The person who makes the payment deducts tax at the source. This lowers tax evasion as some tax is already collected at the time of payment. Higher TDS On Late Tax Return Last year’s Budget doubled the TDS rate for those who had not...