Income Tax New functionality-Section 206AB & 206CCA

Section 206AB & Section 206CCA

The Finance Act 2021 has introduced two new sections- Section 206AB & 206CCA, which require to deduct/ colllect tax at higher rate for certain defined class of non-filers of Income Tax Returns of two previous years. The said sections are applicable w.e.f. 01-07-2021 in case where the amount of TDS/ TCS is in excess of Rs.50,000/-

Section 206AB & 206CCA are required to be complied by the deductor/ collectors of the tax on applicable transactions, which puts additional compliance burden on them. To provide remedy for the same, new functionality has been issued for compliance checks for section 206AB & 206CCA to ease compliance burden of tax deductors/collectors by the CBDT vide Circular No. 11 of 2021 dt 21.06.2021 on implementation of section 206AB & 206CCA w.r.t. higher tax deduction/collection for certain non-filers.

Please refer the copy of said circular enclosed hereunder:





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Advisory: Information relates to the law prevailing in the year of publication as indicated. The above article is only to enable public to have a quick and an easy understanding. Viewers are advised to ascertain the correct position/prevailing law before relying upon any document.

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