Section 206AB provides information on a higher TDS rate that will apply while making payments to a person on the list.
Individuals who have not filed their income-tax returns (ITR) for 2020-21 (FY21) will now be on a list of non-filers prepared by the income-tax (I-T) department. Tax deduction at source (TDS) and tax collected at source (TCS) will be levied at a higher rate from such individuals with effect from April 1, 2022.
The Central Board of Direct Taxes (CBDT) has issued a circular pertaining to Sections 206AB and 206CCA of the I-T Act (introduced in Finance Act, 2021), which provide details regarding people to whom higher TDS/TCS rates should apply.
“The purpose of this circular is to bring more non-filers within the ambit of tax filers,” says Rohit Arora, advocate, Uttarakhand High Court.
First Published: May 20 2022 | 06:06 AM IST