Introduction of section 206Ab in income tax ?
Section 206A tells us that if you have not filed your income tax return for the last 2 years, your TDS will be charged at double the rate. Means if a taxable person whose TDS is being deducted and he is not filing his TDS return, then TDS will be charged at double the rate.
Which person is covered in section 206AB?
Section 206AB Applicable for all professionals, commissions, contractors,
Which person is not covered in section 206AB?
- Salary person
- Persons who are covered under section 192, 192A, 194B, 194BB, 1944LBS and 1944N are excluded from section 206AB.
TDS RATE According to section 206Ab
|Person||TDS RATE (Normal)||TDS RATE (section 206Ab)|
Note point****** Section 206AB is applicable for the TCS provisions.
Section 206Ab is not applicable for a salaried person.
Section 206AB provision is applicable for 1st July-2021.