CBDT ENABLES EASIER TDS/TCS COMPLIANCES.

The Central Board of Direct Taxes (CBDT) has issued a circular clarifying the guidelines for using the functionality designed to help tax deductors and collectors comply with Sections 206AB and 206CCA of the Income-tax Act, 1961.
The Finance Act of 2021 added two new sections to the Income-tax Act of 1961, 206AB and 206CCA, which took effect on July 1, 2021. In the case of certain non-filers (specified persons), these sections imposed a higher rate of tax deduction (section 206AB) or tax collection (section 206CCA) for tax deductions (other than under sections 192, 192A, 194B, 194BB, 194LBC, and 194N) and tax collections. According to the circular, instead of the previous provision of two years, a person can now become a specified person for default in one year. The deductor or collector may check the PAN in the functionality at the start of the financial year, but he is not required to check the PAN of a non-specified person during that year. According to the circular, the specified person does not include a non-resident who does not have a permanent establishment (PE) in India because of the provisos of Section 206AB & 206CCA. Tax Deductors and Collectors are required to perform due diligence on nonresidents to determine if section 206AB and section 206CCA apply to them.

TO READ THE OFFICIAL NOTIFICATION, CLICK HERE

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