File your Income Tax Returns to avoid higher TDS/TCS w.e.f 1 July 2021

RESIDENT INDIVIDUALS

The Finance Act, 2021 has inserted new Section 206AB and 206CCA in the Income Tax Act, 1961 and Finance Act 2022 has brought about the following changes in the above mentioned provisions with effect from 1st April, 2022
The said sections provide for higher rate of TDS/TCS w.e.f. 01 April 2022, if the person has:

Not filed Income Tax Returns for the last one year; and
Aggregate TDS/TCS credit of Rs.50,000 or more in last one year

The provision of Section 206AB and 206CCA is not applicable:

In case where tax is required to be deducted under Section 192, 192A, 194B, 194BB, 194LBC or 194N; or
A Person is Non-resident and does not have Permanent Establishment (PE) in India.

In case of non-compliance, tax will be deducted or collected at higher rate (twice the applicable rate). Any such tax deduction or tax collection at source, will be duly remitted to the Government of India and the bank will not be able to refund. Please ignore this message if you have already filed your ITR.
For any further assistance or guidance, please contact your Relationship Manager. Alternatively, call our Phone Banking centre at 18602677777 or write to us at reachus@indusind.com

NON RESIDENT ORDINARY (NRO) ACCOUNT HOLDERS

In continuation to the above communication, NRO Account holders are requested to duly fill, sign and email a scan copy of the Permanent Establishment Declaration to nri@indusind.com latest by 20th June 2022.

DOWNLOAD DECLARATION FOR PERMANENT ESTABLISHMENT

TCS/TDS Implications
If you have a Permanent Establishment in India, but your PAN is not updated with the Bank OR if you are a defaulter on the basis of checks carried out by the Bank on ITD Compliance portal	TDS will apply at 62.40%(inclusive of Surcharge + Cess)
If you do not have Permanent Establishment in India	Exempted from Section 206AB – TDS will apply at normal rate of 31.20% (inclusive of Surcharge + Cess)

Note:

Permanent establishment for this purpose includes a fixed place of business carried out wholly or partially
TDS is applicable only on the interest earned on NRO Savings and Term Deposits.
Any such tax deduction will be duly remitted to the Government of India within the stipulated timeline and the bank will not be able to refund the same.

For any further assistance or guidance, please contact our toll-free numbers Click here