Budget 2025 removes of Higher TDS/TCS u/s Section 206AB & Section 206CCA for for Non-Filers of Income Tax Return

In the Union Budget 2025, the government proposed the removal of higher TDS/TCS rates under Sections 206AB and 206CCA for non-filers of income tax returns. Previously, non-filers were subjected to higher rates of TDS and TCS on certain payments, such as interest, rent, or dividend income. This change is aimed at easing the compliance burden for taxpayers who might have missed filing their returns due to genuine reasons. It also aligns with the government’s objective to encourage compliance by reducing harsh penalties and making the tax system more taxpayer-friendly. This reform is expected to have a positive impact on individuals who have not been consistent in filing their tax returns.