Section 206AB - Special provision for TDS for Non-filers of return - Income Tax - Ready Reckoner - Income Tax

Special provision for TDS for Non-filers of return - Section 206AB [Inserted by Finance Act, 2021, w.e.f. 01-07-2021] Tax to be deducted at higher rate : (1) Notwithstanding anything contained in any other provisions of this Act, where tax is required to be deducted at source under the provisions of Chapter XVIIB , other than sections 192 , 192A , 194B , [Inserted by FA, 2023 , Section 194BA ] , 194BB , 194-IA , 194-IB , 194LBC , 194M or 194N on any sum or income or amount paid, or payable or credited, by a person to a specified person, the tax shall be deducted at the higher of the following rates, namely: (i) at twice the rate specified in the relevant provision of the Act; or (ii) at twice the rate or rates in force; or (iii) at the rate of 5% (2) If the provisions of section 206AA is applicable to a specified person, in addition to the provision of this section, the tax shall be deducted at higher of the two rates provided in this section and in section 206AA . (3) Meaning of Specified Person : specified person means a person who has not furnished the return of income for the assessment year relevant to the previous year immediately preceding the financial year in which tax is required to be deducted, for which the time limit for furnishing the return of income section 139(1) has expired and the aggregate of tax deducted at source and tax collected at source in his case is ₹50,000 or more in the said previous year. The specified person shall not include a non-resident who does not have a permanent establishment in India; or a person who is not required to furnish the return of income for the assessment year relevant to the said previous year and is notified by the Central Government in the Official Gazette in this behalf. .[Inserted by FA, 2023, w.e.f., 01-04-2023 ] the Central Government hereby notifies the Reserve Bank of India to be a person for the purposes of this sub clause. [ Notification no. 45/2024 dated 27/05/2024 ] Note - Permanent Establishment includes a fixed place of business through which the business of the enterprise is wholly or partly carried on.