Save Rs 499 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

Declaration under section 206 AB

182 views

Save Share

Hem Upadhyay

2 Points Posted on 17 June 2021

Will 50k limit will be individual deductor or assessee as whole.
in case of transportation, logistics and car rental, there are individual person who even not filing ITR and there count is huge. it's keeps on changing as well

Replies (2)

Quick Summary

This discussion explores the application of the £50k limit under Section 206 AB. The key question is whether this limit applies to individual deductors or the assessee as a whole. Participants consider the practical challenges for sectors like transportation and logistics, where many payees may not file Income Tax Returns and their numbers are substantial and fluid. The prevailing view is that the limit is likely tied to the payee's PAN, aligning with the PAN-based nature of tax deduction.

CMA Poornima Madhava

CMA

13117 Points Posted on 17 June 2021

I think this limit would be applicable in respect of the PAN of the payee against which the tax has been deducted by the deductor which is also PAN based.