OPEN APP
Home / Money / Personal Finance /  New TDS rule from next month: Income tax department issues new functionality for compliance checks. Details here

New Delhi: The income tax department has said it has developed a new utility to help tax deducted at source (TDS) deductors and tax collected at source (TCS) collectors identify the 'specified persons' on whom a higher rate of taxes would be levied from July 1.

The Central Board of Direct Taxes (CBDT) issued a circular on Monday on the implementation of Sections 206AB and 206CCA with respect to higher tax deduction/collection for certain non-filers.

"CBDT issues Circular No. 11 of 2021 dated 21.06.2021 on implementation of section 206AB & 206CCA wrt higher tax deduction/collection for certain non-filers. New functionality issued for compliance checks for sec 206AB & 206CCA to ease the compliance burden of tax deductors/collectors," the income tax department tweeted.


The CBDT said that since the TDS deductor or the TCS collector would be required to do due diligence on whether the deductee or collected is a 'specified person', this could lead to an extra compliance burden on them.

The new functionality -- 'Compliance check for sections 206AB and 206CCA' -- would ease this compliance burden, the CBDT said.

Through the functionality, the TDS deductor or TCS collector can feed PAN of the deductee or collectee on the functionality and get to know whether the deductee or collectee is a 'specified person'.

The Budget 2021 had brought in a provision that mandated that non-filers of income tax returns for the past two fiscal years would be subjected to higher TDS and TCS rate if such tax deduction was 50,000 or more in each of those two years.

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Subscribe to Mint Newsletters
* Enter a valid email
* Thank you for subscribing to our newsletter.
Post your comment

Recommended For You

Trending Stocks

×
Get alerts on WhatsApp
Set Preferences My ReadsWatchlistFeedbackRedeem a Gift CardLogout