Section 206CCA - Special provision for collection of tax at source for non-filers of income-tax return - Income Tax - Ready Reckoner - Income Tax

Special provision for collection of tax at source for non-filers of income-tax return. - Section 206CCA [ W.e.f. 01.07.2021 ] Tax collection at higher rate Notwithstanding anything contained in any other provisions of this Act, Where tax is required to be collected at source under the provisions of Chapter XVII-BB , on any sum or amount received by a person from a specified person, the tax shall be collected at the higher of the following two rates, namely: (i) at twice the rate specified in the relevant provision of the Act; or (ii) at the rate of 5% The rate of tax collection at source under this section shall not exceed 20%. [ Inserted by FA, 2023, w.e.f. 01-07-2023 ] Additional collection of tax If the provisions of section 206CC is applicable to a specified person, in addition to the provisions of this section, the tax shall be collected at higher of the two rates provided in this section and in section 206CC . Meaning of specified term For the purposes of this section 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 collected, for which the time limit for furnishing the return of income under 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 expression permanent establishment includes a fixed place of business through which the business of the enterprise is wholly or partly carried on. Person not covered by section 206CCA [ Section 206CCA(3) ] The provision of section 206CCA are not applicable in the case of following specified person a non-resident who does not have a permanent establishment in India. 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. [Amendment by FA, 2023 ] ​​​​​​​ the Central Government hereby notifies the Reserve Bank of India to be a person. [ Notification 46/2024 dated 27/05/2024 ]