Quick Summary
Rationalization of provisions of section 206AB and 206CCA to widen and deepen tax-base In order to widen and deepen the tax-base and to nudge taxpayers to furnish their return of income, Finance Act, 2021 inserted sections 206AB and 206CCA in the Act. The said sections provide for special provision for deduction and collection of tax at source respectively, in case of specified persons at higher rates specified therein. 2. Specified person has been defined to mean a person who has not file
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FAQ :
These sections were inserted by the Finance Act, 2021, to widen the tax base and encourage taxpayers to file their income tax returns by imposing higher tax deduction and collection rates on specified persons.
A 'specified person' is someone who has not filed their income tax return for the two assessment years preceding the current financial year, and whose aggregate tax deducted or collected at source was £50,000 or more in each of those two years.
Yes, the government has provided an online utility for taxpayers to check whether they fall under the definition of a 'specified person'.
Yes, the provisions of Section 206AB do not apply to transactions where tax is to be deducted under specific sections like 192, 192A, 194B, 194BB, 194LBC, or 194N. Additionally, individuals and HUFs covered under sections 194-IA, 194-IB, and 194M are also exempt.
These amendments are proposed to take effect from 1st April 2022.
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