Amendment of section 206AB.
61. In section 206AB of the Income-tax Act,––
(a) in sub-section (1),––
(i) for the figures, letters and word “194LBC or 194N”, the figures, letters and word “194-IA, 194-IB, 194LBC, 194M or 194N” shall be substituted;
(ii) the brackets and words “(hereafter referred to as deductee)” shall be omitted;
(b) in sub-section (3), for the portion beginning with the words “filed the returns of income” and ending with the words “each of these two previous years:”, the following shall be substituted, namely:––
“furnished the return of income for the assessment year relevant to the previous year immediately preceding the financial year in which tax is required to be deducted, for which the time limit for furnishing the return of income under sub-section (1) of section 139 has expired and the aggregate of tax deducted at source and tax collected at source in his case is rupees fifty thousand or more in the said previous year:”.
Notes on Clauses:
Clause 61 seeks to amend section 206AB of the Income-tax Act relating to special provision for deduction of tax at source for non-filers of income-tax return.
Sub-section (1) of the said section provides the rates at which the tax shall be deducted in case of specified person.
It is proposed to amend the said sub-section (1) to,––
(i) include the reference of sections 194-IA, 194-IB and 194M; and
(ii) omit the brackets and words “(hereafter referred to as deductee)”.
It is further proposed to amend sub-section (3) of the said section to provide that for the purposes of the said section, “specified person” shall mean a person who has not furnished the return of income for the assessment year relevant to the previous year immediately preceding the financial year in which tax is required to be deducted, for which the time limit for furnishing the return of income under sub-section (1) of section 139 has expired and the aggregate of tax deducted at source and tax collected at source in his case is rupees fifty thousand or more in the said previous year.
These amendments will take effect from 1st April, 2022.
