With season of rains, it seems there is season of new amendments! To capture those into tax net, who has taxable income, but for some or other reason, do not file ITR, Govt is introducing new provision u/s 206AB to deduct TDS at higher rates.
Rate of Deduction:
Higher of following:
Mechanism to Verify ITR data of Deductee:
In absence of such mechanism of verify ITR filing data, it is suggested to obtain declaration from the Deductee.
Name and Address of the Deductor (Payer)
Subject : Self Declaration u/s 206AB of The Income Tax Act, 1961 regarding deduction of TDS
With reference to the above subject matter, we (Name of Supplier/Deductee/ Payee) here by confirm that; we have filed Income Tax Returns for below mentioned immediately preceding Financial Years relevant to the year of declaration.
|F.Y.||Whether amount of TDS is more than 50,000||Due Date
of Filing of ITR
|Actual Date of Filing of ITR||ITR –V Ack No.|
|2019-20||Yes / No|
|2018-19||Yes / No|
We have read and understood the provisions of Section 206AB of the Act and related applicable rules , notifications , circulars . Further, above mentioned PAN and IT returns details are correct.
We authorize (Name of Deductor) to recover the differential tax at higher rates along with applicable interest and penalties in case above mentioned information is proved to be incorrect.
With submitting this declaration, it is kindly requested to consider us to be compliant with the requirements of the Sec.206AB of the Act.
Name of Supplier/ Vendor
It is anticipated that; CBDT will shortly make available facility to verify ITR filing status of the deductee in order to make this smoothly workable. Presently, such facility is available to banks/ post offices to comply with Provision of Sec.194N.