Non-tax filers may move to NCDs, debt mutual funds on high TDS fears

Appetite for fixed income products like non-convertible debentures (NCDs) and select debt mutual funds is likely to increase among individuals who have not been filing tax returns. This follows a Union Budget announcement in February that requires individuals who have not filed tax returns for the previous two financial years and whose aggregate TDS (tax deducted at source) on interest income in each of these financial years exceeded Rs 50,000