New Delhi: The earnings tax division has mentioned it has developed a brand new utility to assist tax deducted at supply (TDS) deductors and tax collected at supply (TCS) collectors determine the ‘specified individuals’ on whom a better price of taxes could be levied from July 1.
The Central Board of Direct Taxes (CBDT) issued a round on Monday on the implementation of Sections 206AB and 206CCA with respect to larger tax deduction/assortment for sure 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 earnings tax division tweeted.
CBDT points Circular No. 11 of 2021 dt 21.06.2021 on implementation of part 206AB & 206CCA wrt larger tax deduction/assortment for sure non-filers. New performance issued for compliance checks for sec 206AB & 206CCA to ease compliance burden of tax deductors/collectors. pic.twitter.com/1DP39BKVZi— Income Tax India (@IncomeTaxIndia) June 21, 2021
The CBDT mentioned that for the reason that TDS deductor or the TCS collector could be required to do due diligence on whether or not the deductee or collected is a ‘specified particular person’, this might result in an additional compliance burden on them.
The new performance — ‘Compliance examine for sections 206AB and 206CCA’ — would ease this compliance burden, the CBDT mentioned.
Through the performance, the TDS deductor or TCS collector can feed PAN of the deductee or collectee on the performance and get to know whether or not the deductee or collectee is a ‘specified particular person’.
The Budget 2021 had introduced in a provision that mandated that non-filers of earnings tax returns for the previous two fiscal years could be subjected to larger TDS and TCS price if such tax deduction was ₹50,000 or extra in every of these two years.
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