ANALYSIS OF SECTION – 206AA, 206AB & 206CCA
SECTION 206AA : (APPLICABLE FROM 01-04-2010)
20% TDS IN CASE OF NO PAN OR NON-FURNISHING OF PAN BY ANY PERSON
SECTION 206AB : (APPLICABLE FROM 01-07-2021)
HIGHER RATE OF TDS FOR NON-FILERS OF INCOME TAX RETURN.
RATE OF TDS : “5%” OR “DOUBLE OF RATE PRESCRIBED IN APPLICABLE SECTION” – WHICHEVER IS HIGHER.
SECTION 206CCA : (APPLICABLE FROM 01-07-2021)
HIGHER RATE OF TCS FOR NON-FILERS OF INCOME TAX RETURN.
RATE OF TDS : “5%” OR“DOUBLE OF RATE PRESCRIBED IN APPLICABLE SECTION“ – WHICHEVER IS HIGHER).
CONDITIONS FOR HIGHER RATE OF TDS/TCS UNDER SECTION 206AB/206CCA : [BOTH CONDITIONS MUST SATISFY] –
- PERSON HAS NOT FILED ITR (INCOME TAX RETURN) “FOR LAST 2 ASSESSMENT YEARS (AY) FOR WHICH DUE DATES U/S-139(1) HAS BEEN EXPIRED.”
- TOTAL AMOUNT OF “TDS AND TCS” IS Rs. 50,000 OR MORE IN EACH OF THESE TWO ASSESSMENT YEARS.
NOTE :
(i) SECTION-206AB NOT APPLICABLE IN CASE OF SECTION – 192, 192A, 194B, 194BB, 194LBC AND 194N.
(ii) SECTION-206AB & 206CCA NOT APPLICABLE IN CASE OF NON-RESIDENT WHO DOES NOT HAVE A PERMANENT ESTABLISHMENT (FIXED PLACE OF BUSINESS) IN INDIA.
(iii) ALL THESE 3 SECTIONS START WITH “NOTHWITHSTANDING”- MEANS THEY PREVAIL ALL OTHER SECTIONS.
(iv) IF BOTH SECTIONS 206AA & 206AB ARE APPLICABLE : SECTION CHARGING HIGHER RATE WILL BE APPLICABLE.
(v) SINCE SECTION-206AB & 206CCA ARE APPLICABLE AFTER EXPIRY OF DUE DATE UNDER SECTION 139(1) I.E. DUE DATE OF ORIGINAL RETURN ; A PEROSN WHO FILES HIS RETURN AFTER DUE DATE U/S- 139(1) WILL BE EXEMPTED FROM SECTION – 206AB & 206CCA FROM THE DAY OF FILING AND VERIFICATION OF ITR.
(vi) LINK FOR COMPLIANCE CHECK FOR SECTIONS – 206AB & 206CCA : https://report.insight.gov.in
FOR YOUR REFERENCE :
CIRCULAR NO. 11 OF 2021 DATED 21-06-2021 : https://www.incometaxindia.gov.in/communications/circular/circular_11_2021.pdf
LINK TO DOWNLOAD SEC-206AA : https://www.incometaxindia.gov.in/Acts/Finance%20Acts/2009/102120000000010238.htm
LINK TO DOWNLOAD SEC-206AB : https://qc.incometaxindia.gov.in/Acts/Finance%20Acts/2021/102520000000117248.htm
LINK TO DOWNLOAD SEC-206CCA : https://qc.incometaxindia.gov.in/Acts/Finance%20Acts/2021/102520000000117249.htm
