SECTION 206AB OF INCOME TAX
This query is : Resolved
25 November 2025
Dear Experts
I'd like to know that still the Section 206AB is applicable or Omitted w.e.f. 01/04/2025?
I'd like to know that still the Section 206AB is applicable or Omitted w.e.f. 01/04/2025?
25 November 2025
- Finance Act, 2025 Amendment
- The Finance Bill, 2025 explicitly proposed the removal of Section 206AB and Section 206CCA (which dealt with higher TCS for non-filers).
- The government cited excessive compliance burden and capital blockage as reasons for omission. Deductors and collectors had to verify return-filing status of deductees/collectees, which created operational challenges.
- Effective Date
- The omission is effective from 01 April 2025.
- Up to 31 March 2025, Section 206AB remained applicable.
- From FY 2025–26 onwards, deductors/collectors no longer need to apply higher TDS/TCS rates for non-filers.
- The Finance Bill, 2025 explicitly proposed the removal of Section 206AB and Section 206CCA (which dealt with higher TCS for non-filers).
- The government cited excessive compliance burden and capital blockage as reasons for omission. Deductors and collectors had to verify return-filing status of deductees/collectees, which created operational challenges.
- Effective Date
- The omission is effective from 01 April 2025.
- Up to 31 March 2025, Section 206AB remained applicable.
- From FY 2025–26 onwards, deductors/collectors no longer need to apply higher TDS/TCS rates for non-filers.
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