can someone please tell me what is 206 AB act. is this for all the vendors like 94c, 94j & 94i?
please explain with example if possible.
thank you
As per the new provision u/s 206AB, the tax deductor/collector is required to check if the income earner has filed the returns for the previous two years if the amount of TDS deducted is ₹50,000 or more.
If the returns have not been filed, then the TDS deducted will be double the existing TDS rate or at rate of 5%, whichever is higher.
However, this section is not applicable for Salary income, provident fund payments, TDS on lottery and winning from horse race.
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