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Section 206AB

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K.GANESH KARTHI

I.T.ASSISTANT

54 Points Posted on 05 July 2021

All we know the provisions of section 206AB will be applicable w.e.f. 01-07-2021.

I just want to confirm whether, it applies for payment & deductions made from 01.07.2021 (or) for expenses such as interest, rent made up to 30.06.2021 and TDS deducted thereafter from 01.07.2021

Thanks in advance!

Replies (2)

Quick Summary

This discussion clarifies the applicability of Section 206AB of the Income Tax Act, which came into effect on 1st July 2021. The key takeaway is that Section 206AB applies to Tax Deducted at Source (TDS) from 1st July 2021 onwards, regardless of when the expense was incurred or accounted for. Therefore, if TDS is deducted on or after this date, the provisions of Section 206AB will apply.

CMA Poornima Madhava

CMA

13117 Points Posted on 05 July 2021

If you have accounted them (as well as deducted tax at source) in Jun itself, then 206AB would not apply. If tax is deducted from July onwards, 206AB would apply.

Gaurav Singh

Sales Engineer

35 Points Posted on 20 September 2021

A company located in Singapore is having a subsidiary office in India. Parent company deals in distribution & selling of medical Instrument via some dealers in India (India office is not involved in selling and all payments from customer/dealer end are directly made to Principal Company account in Singapore)

Section 206 AB will be applicable to Principal company in Singapore