Amendment of section 206CCA.
63. In section 206CCA of the Income-tax Act,––
(a) in sub-section (1), the brackets and words “(hereafter referred to as collectee)” 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 collected, 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 63 seeks to amend section 206CCA of the Income-tax Act relating to special provision for collection of tax at source for non-filers of income-tax return.
Sub-section (1) of the said section provides for the rates at which tax shall be collected in case of specified person.
It is proposed to amend the said sub-section (1) to omit the brackets and words “(hereafter referred to as collectee)”.
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 collected, for which the time limit for furnishing of 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.
