TMI BlogCircular regarding use of functionality under section 206AB and 206CCA of the Income-tax Act, 1961X X X X Extracts X X X X X X X X Extracts X X X X ..... dment by the Finance Act 2022 ) mandated tax deduction ( section 206AB ) or tax collection ( section 206CCA ) at higher rate in case of certain non-filers (specified persons) with respect to tax deductions (other than under sections 192 , 192A , 194B , 194BB , 194LBC and 194N ) and tax collections. Higher rate was twice the prescribed rate or 5%, whichever is higher. Specified person meant a person who satisfies both the following conditions: - (i) He has not filed the returns of income for both of the two assessment years relevant to the two previous years immediately before the previous year in which tax is required to be deducted/collected. Two previous years to be counted are required to be those whose return filing date unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provision of its non-applicabilily on tax to be deducted under sections 192 , 192A , 194B , 194BB, 194LBC and 194N . (ii) The definition of specified person has been amended in both section 206AB and section 206CCA . Now specified person means a person who satisfies both the following conditions: (a) He 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/collected. The previous year to be counted is required to be the one whose return filing date under sub-section (I) of section 139 has expired. (b) Aggregate of tax deducted at source and tax collected at source is rupees fifty thousand or more i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... PANs of non-specified person more than once during the financial year. If any specified person files a valid return of income (filed verified) for the assessment year 2021-22 during the financial year 2022-23, his name would be removed from the list of specified persons. This would be done on the date of filing of the valid return of income during the financial year 2022-23. If any specified person files a valid return of income (filed verified) for the assessment year 2022-23, his name would be removed from the list of specified persons. This would be done on the due date for filing of the return of income for AY 2022-23 or on the date of actual tiling of valid return (filed verified), whichever is later. If the aggregate of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... financial year. Thus, deductor need not check again with respect to these 9,995 PANs during that financial year. There are chances that the 5 PANs which are of specified persons may move out of the list during the financial year and for that there will be need to recheek at the time of making tax deduction or tax collection. 6. The list would be drawn afresh at the start of each financial year and the above process would have to be repeated. For example, at the beginning of the financial year 2023-24 a fresh list would be prepared with previous year 2021-22 as the relevant previous year. Then, no name would be added to the list of specified persons during the financial year and only name would be removed based on the logic given in the 3 ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
