About Section 206AB

This query is : Resolved

SWAPNIL (Querist)
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22 June 2021 Dear Sir/Madam,
From 1st july 2021 New Section 206AB is start in this section my qury is if one customer tds under section 94C was deducted Rs.25000/- and under section 94J TDS was deducted Rs.25000/- in Last two each year then this section is applicable to this customer if yes then if this customer not filled ITR or ITR not filled within time limit as per section 139(1) then at which rate tds is deducted.Please give guidelines.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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22 June 2021 As per the new Section 206AB, any person making payment to a ‘specified person’ (explained below) shall be liable to deduct TDS at the higher of the following rates:

– Twice the specified rate as per relevant provisions of the Income Tax Act.

– Twice the rate/rates in force (if modified by CBDT).

– At the rate of 5%

CMA Poornima Madhava

CMA Poornima Madhava (Expert)
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22 June 2021 Yes, provisions of section 206AB would kick in as TDS has reached the threshold limit in this case. If ITR is not filed for last 2 years (for which the due date is already over), then rates as mentioned above by CA R Seetharaman would apply.

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