Section 206AB and Section 206CCA – Special provision for TDS/TCS for non-filers of income-tax return

These sections are special provision for deduction/collection of tax at source at a higher rate for certain non-filers (specified person) of Income Tax Return.

For FY 2021-22, specified person shall mean those persons who have not filed their Income Tax Return for both the FY 2018-19 & FY 2019-20 and whose total tax deducted/collected during each of FY 2018-19 & FY 2019-20 were INR 50,000/- or more.

Section 206AB deals with deduction of tax (TDS) at a higher rate whereas Section 206CCA deals with the collection of tax (TCS) at a higher rate.

Sub-section (1) of Section 206AB/206CCA states that, where tax is required to be deducted/collected at source on any sum or income or amount paid/received or payable or credited by any person to/from the specified person, then Tax shall be deducted/collected at higher of the following rates:

Section 206AB

Section 206CCA

(i) At twice the rates specified in the relevant provisions of the act

(i) At twice the rates specified in the relevant provisions of the act

(ii) At twice the rate or rates in force

(ii) At the rate of 5%

(iii) At the rate of 5%


 

 

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