Section 206 Ab

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.