Circular regarding use of functionality under section 206AB and 206CCA of the Income-tax Aci, 1961
May, 18th 2022
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
New Delhi, Dated J.'1:th May, 2022
Subject: Circular regarding use of functionality under section 206AB and 206CCA of the Income-tax Aci, 1961 - reg.
Finance Act, 2021 inserted two new sections 206AB and 206CCA in the Income-tax Act 196 1 (here inafter referred to as "the Act") whi ch took effect from I S! day of Jul y, 202 1. These sections (as they stood prior to its amendment by the Finance Act 2022) mandated tax deduction (secti on 206AB) or tax collection (secti on 206CCA) at higher rate in case of certain non-fi lers (specified persons) with respect to tax deductions (other than under sections 192, I92A, 194B, 194BB, 194LBC and I 94N) and tax collections. Higher rate was twice the prescribed rate or 5%, whichever is higher. Spec ified person meant a person who satisfies both the following conditions: -
(i) He has not fil ed the returns of income for both of the two assessment years relevant to the two previous years immediately before the previous year in which tax is required to be deducted/collected. Two previous years to be counted are required to be those whose return filing date under sub-section ( I) of section 139 has expired.
(ii)Aggregate of tax deducted at so urce and tax collected at source is rupees fifty thousand or more in each of these two previous years.