Section 206AB & Sec 206CCA | TDS/TCS at Higher Rates | w.e.f. 01.07.2021| by. CA. Deep Kinra

#206AB #206CCA #tds

In this video, we have understood who should file ITR u/s 139(1), we have also discussed Section 234F which explains what are the consequences of late filling of ITR.
Further we have explained about newly inserted section for TDS, according to which higher rate of TDS is to be deducted i.e Section 206AB & Section 206CCA
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Time stamps:
00:00 Introduction
00:23 Section 139(1) Submission of Return of Income
01:38 Section 234F Fees for default in furnishing return of income
02:19 Section 206AB & Section 206CCA of Income Tax Act
03:33 Specified Person' for Section 206AB & Section 206CCA
06:05 Rate of deduction of TDS under section 206AB & Sec 206CCA
06:22 Exemption under section 206AB & 206CA
07:58 Conclusion
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Sec 139(1) : Submission of Return of Income

Section 234F : Fees for default in furnishing return of income.
• Without prejudice to the provisions of this Act, where a person required to furnish a return of income under section 139, fails to do so within the time prescribed in sub-section (1) of said section, he shall pay, by way of fee, a sum of:
(a) Rs. 5000/-, if the return is furnished on or before the 31st December of the assessment year;
(b) Rs. 10,000/- in any other case.
• Provided, that if the total income of the person does not exceed Rs. 5,00,000/, the fee payable under this section shall not exceed Rs. 1000/-.
• If a person has total income of the person does not exceed Rs. 2,50,000/-, no penalty would be charged.

Section 206AB & sec 206CCA of Income Tax Act:
Before deducting any TDS (except few sections), deductor has to comply with the provisions of section 206AB, if the person whose TDS is to be deducted is a specified person.

Meaning of the term 'Specified Person' for Section 206AB
The term 'specified person' is explained under section 206AB(3).
The coverage and non-coverage of the term is explained hereunder-
Coverage Non-coverage
The term 'specified person' includes the person who satisfies all the following criteria-
1. The person has not filed income tax return of two previous years immediately preceeding the previous year in which TDS is required to be deducted;
2. The time limit of filing of an income tax return as per section 139(1) is expired; and
3. The total TDS and TCS is Rs 50,000 or more in each of the two previous years. The term 'specified person' doesn't include a non-resident not having a permanent establishment in India.

Rate of deduction of TDS under section 206AB
TDS under section 206AB will be deducted at higher of the following rates-
• Twice the rate as specified under the relevant provision of the Income Tax Act; or
• Twice the rate/ rates in force; or
• at the rate of 5%.
Exemption under section 206AB
Provisions of section 206AB do not apply to the following tabulated TDS sections of Income Tax Act-
Section 192
Section 192A
Section 194B
Section 194BB
Section 194LBC
Section 194N
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Disclaimer
This video is only for educational purpose. Do not consider it to be an opinion in any manner what so ever. Do check the facts and figures before trusting. We do take care to use authentic information only, but we will not be held liable in any manner what so ever in case of any contradicting fact or any loss incurred to you relying upon the information given in this video.

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Regards:
CA. Deep Kinra