Section 206AB and 206CCA of Income tax Act : TDS & TCS for non-filers of income-tax return.
👉As per section 206AB any person (liable to deduct TDS under Chapter XVIIB, other than section 192, 192A, 194B, 194BB, 194LBC, or 194N) making payment to "specified person" shall be liable to deduct TDS at the higher of the following rates
(i) Twice the rate specified in the relevant provision of the Act; or
(ii) Twice the rate or rates in force; or
(iii) 5%
Provided If the provisions of section 206AA is applicable then higher of section 206AB & 206AA to be considered.
👉As per section 206CCA any person liable to Collect TCS under Chapter XVII-BB on any sum or amount received from "specified person" shall be liable to Collect TCS at the higher of the following rates:
(i) Twice the rate specified in the relevant provision of the Act; or
(ii) 5%
Provided If the provisions of section 206CC is applicable then higher of section 206CCA & 206CC to be considered.
Note:
✓ Specified person :
A person who has not filed the ROI for both of the 2 AY relevant to the 2 PY immediately prior to the PY in which tax is required to be deducted or collected, for which the time limit of filing ROI under section 139(1) has expired; and the aggregate of TDS and TCS in his case is RS 50,000 or more in each of these 2 previous years
provided that the specified person shall not include a non-resident who does not have a permanent establishment in India
✓ These sections are applicable from 1st July 2021
✓ [ROI - return of income, AY - assessment year, PY - previous year]
last updated on 24/06/2021.
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