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:
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Section 206AB |
Section 206CCA |
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(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 |
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(ii) At twice the rate or rates in force |
(ii) At the rate of 5% |
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(iii) At the rate of 5% |
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