All you need to know about new TDS norms from July 1

Rules mandate tax deduction at a higher rate in case I-T returns are not filed by specified persons.

The Finance Act 2021 amended rules relating to tax deducted at source come into effect from July 1. These rules mandate tax deduction or tax collection at a higher rate in case the income tax returns are not filed by certain specified persons. Here is all that you need to know. Normally, the obligation to pay tax rests with the person who earns the income. TDS puts the onus on the person paying the amount to deduct tax on behalf of the person receiving the payment. TDS plays a key role in checking malpractices such as non-disclosure of incomes.