Finance Bill 2021 introduced Section 206AB of the Income Tax Act which will take effect from 1st July 2021. It is a special provision for the deduction of tax at source at a higher rate for the non-filers (Specified Person) of Income Tax Return.
The tax would be deducted at source at twice the rate as specified under the relevant category or at a rate of 5%, whichever is higher, in cases where any amount or sum or income is paid or payable or credited to the Specified Person:
who has not filed their Income Tax Return for two years immediately prior to the year in which tax is required to be deducted.
where the aggregate of tax deducted at source in each of the two previous years is Rs 50 thousand or more.
Therefore, for FY 2021-22, the buyer would have to deduct the TDS at a higher rate from seller/vendor/supplier who has not filed their Income Tax Return for both the FY 2019-20 and FY 2020-21 and the aggregate of TDS is Rs 50 thousand or more during each of FY 2019-20 and FY 2020-21.
Tax deductors can verify if any party is a ‘Specified Person’ as defined in Section 206AB by entering a valid PAN in the department’s portal. A PAN that has not been filed for the past two years and any TDS that has been deducted from the party which is Rs 50 thousand or more will be found on such list. Parties whose PANs fall under the Specified Person list will be taxed at source at twice the rate as specified under the relevant category or at a rate of 5%, whichever is higher.
Follow us at
Facebook
https://www.facebook.com/bkexcelnetwork
Instagram
https://www.instagram.com/bkexcelnetwork
Twitter
https://www.twitter.com/birukolekar
Telegram
https://t.me/bkexcelnetwork
WhatsApp
https://wa.me/+919762646663?Text=
#TDS #206AB #TDSonSpecifiedPersons #194Q #TDSonGoods #Budget2021 #ContactRegister #TallyPrime #GST #vlookup #lookup #msexcel #autotax #gst #gsteinvoice #audittrail #AuditTrailinTally #TallyPrime #MSExcel #AdvancedExcel #ConditionalFormatting #ERP #PowerPivot #PowerMap #PowerQuery #TallyPrime #TallyUpdate #TallyNewRelease #TallyCourse #TallyOnline #TallyonCloud #Corporate_Trainer #BiruKolekar #TallyExpert #TallySpecialist #TDSonPurchaseofGoods
0 Comments