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Where to check applicability of higher TDS/TCS rates – New functionality introduced

Gourav Ahuja 1 Comment , ,

Where to check applicability of higher TDS/TCS rates - New functionality introduced

Income Tax Functionality - Taxationwealth

Do you want to get details about the new functionality  that has been inserted under the Finance Act, 2021? If yes, then you have landed on the right article. this article contains all the details about the new sections that has been introduced  in the Income Tax Act 1961. The New Section that has been added through this functionality will take effect from July 1, 2021 under which higher rates will be  charged. Be in this article till the end and get all the details. 

Functionality under section 206AB and 206CCA under Income Tax Act, 2021.

Section 206AB mandates the tax deduction and Section 206CCA mandates tax collection at a higher rate from the persons who are non-fillers with respect to other tax deductions and tax collections. basically, it has been introduced to ease the tax deductor or the tax collector who will be the specified person as per the conditions. The CBDT is issuing this new functionality known as “Compliance Check for Section 206AB & 206CCA” from 1st of July 2021. 

List of the Specified Person:

Specified person under this case will be the one who will satisfy the following conditions:

  • If the person being a resident of India; has not filled the ITRs of two assesment years immediately prior the previous year in which the tax is required to be deducted and the time limit to file the return for that year has been expired.
  • The sum of TDS and TCS of him are Rs. 50,000 or more.

Conditions Under this Functionality

  1.  The TDS & TCS rates should be double the rate specified or 5%; whichever is higher.
  2. If the person as “Specified ” above; had not furnish the PAN to TDS collector then the TDS rate will be 20% or above (whichever will be higher) .
  3. Higher rates will not be charged if the date has not been expired to file the ITR of the previous assesment years prior the previous year.
  4. The Higher rates in such cases can go upto: 20%(TDS u/s 206AB) & 5% (TCS u/s 206CCA).
  5. Section 206AA provides higher rate for the non-furnishing of the PAN and Section 206CC provides higher rates for non-furnishing of the PAN.  

Exemptions Under Section 206AB & Section 206CCA

Following were the Exemptions under which both the section 206AB and section 206CCA are non-applicable.

  1.  Section 206AA and Section 206CCA will not be applicable on the person who will be a non-resident of India. 
  2. The rules of section 206AB will not be applicable on the provisions of various other sections that are: Section 192; Section 192A; Section 194B, Section 194BB, Section 194LBC, Section 194N.

As per the above details, about the new functionality under section 206AB and Section 206CCA; the specified person as mentioned above will be applicable for the higher interest rates as per the provisions under Income tax Act, 1961 which will came into existence from 1st July 2021.

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Gourav Ahuja

Hi, i am a gamer. I play with words. I believe in persistence no matter how hard or cumbersome the path of perfection may be and due to this constant urge of achieving what i want people often think me to be abnormal but according to me i just don’t get embarrassed easily since i am already maxed out.

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