Quick Summary
Removal of higher TDS/TCS for non-filers of return of income Section 206AB of the Act, requires deduction of tax at higher rate when the deductee specified therein is a non-filer of income-tax return. Section 206CCA of the Act, requires for collection of tax at higher rate when the collectee specified therein is a non-filer of income-tax return. This is subject to other conditions specified in the two sections. 2. Representations were received from various stakeholders that it is difficult
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FAQ :
Currently, Section 206AB and Section 206CCA of the Act require tax to be deducted or collected at a higher rate from individuals who have not filed their income tax returns, subject to other conditions.
Stakeholders reported difficulties for deductors/collectors in verifying if returns were filed, leading to the incorrect application of higher rates, blocking capital, and increasing compliance burdens.
It is proposed to omit Section 206AB and Section 206CCA of the Act, thereby removing the requirement for higher TDS/TCS rates for non-filers.
These amendments are proposed to take effect from 1st April 2025.
Deductors and collectors will benefit from a reduced compliance burden, and potentially non-filers will no longer face higher tax deductions or collections.
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