Higher Tax Deduction Rates Imposed on Non-Filers Exceeding Rs. 50,000 to Encourage Timely Income Tax Return Submission
A legal provision imposing higher tax deduction rates for non-filers of income tax returns. If a specified person has not filed returns for the preceding assessment year and has tax deducted/collected exceeding Rs. 50,000, tax shall be deducted at twice the standard rate or 5%, whichever is higher. Exceptions include non-residents without permanent establishment in India and certain government-notified entities. The provision aims to incentivize timely income tax return filing.
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