Public Notice

|| Attention All Customers ||
Insertion of Section 206AB & 206CCA – Special Provision for TDS & TCS for Non-filers
of Income Tax return w.e.f. 01-07-2021
The Finance Act, 2021 has inserted new section 206AB- Special provision for deduction
of tax at source for non-filers of ITR and 206CCA - Special provision for collection of
tax at source for non-filers of income-tax return which will be in effect from 01st July 2021.
Above provision will apply to the “specified person” who has not filed the returns of income for
all of the 2 assessment years relevant to the 2 previous years, and whose aggregate of TCS
& TDS is ₹ 50000 and more in all the relevant years.
As per above provision, Tax for “specified person” shall be deducted at higher of the following
rates:-
(i) at twice the rate specified in the relevant provision of the Act; or
(ii) at twice the rate or rates in force; or
(iii) at the rate of five per cent.
TCS Rate as per Special provision 206CCA
Recipient who has not filed the returns of

Other Recipient – Recipient who has filed
income for all of the 2 assessment years
return of income for any of the 2
relevant to the 2 previous years for which
assessment years relevant to the 2
filing of ITR under Sec 139(1) has expired
previous years for which filing of ITR u/s
and aggregate of TDS & TCS is ₹ 50,000 and
139(1) has expired
more in each of above 2 previous years
TCS TCS
Section Section
Particulars Rate Particulars Rate
TCS on Foreign TCS on Foreign
6CO 10% 6CO 5%
Remittance Remittance
Remittance under LRS
Remittance under LRS for
for education Loan
education Loan taken from
6CP 5% 6CP taken from financial 0.50%
financial institution
institution mentioned in
mentioned in Sec 80E
Sec 80E
Remittance under LRS
Remittance under LRS for
for purpose other than
purpose other than for
for purchase of
purchase of Overseas tour
6CQ 10% 6CQ Overseas tour package 5%
package or for education
or for education loan
loan taken from financial
taken from financial
institution
institution
6CR TCS on Sale of Goods 5% 6CR TCS on Sale of Goods 0.10%
Page | 1
TDS Rate as per Special provision 206AB:
Recipient who has not filed the returns of

income for both of the 2 assessment years Other Recipient – Recipient who has filed
relevant to the 2 previous years for which return of income for any of the 2 assessment
filing of ITR under Sec 139(1) has expired and years relevant to the 2 previous years for
aggregate of TDS & TCS is ₹ 50,000 and more which filing of ITR u/s 139(1) has expired
in each of above 2 previous years
TDS TDS
Section Section
Rate Rate
TDS on interest other than TDS on interest other than
194A 20% 194A 10%
interest on Securities interest on Securities
Individual or HUF 5% Individual or HUF 1%
194C 194C
Others 5% Others 2%
TDS on Commission or TDS on Commission or
194H 10% 194H 5%
Brokerage Brokerage
a. Payment of rent on Plant & a. Payment of rent on Plant
Machinery or equipment 5% & Machinery or equipment 2%
194i 194i
b. Payment of rent on Land & b. Payment of rent on Land
20% 10%
Building or F&F & Building or F&F
In case of fees for technical In case of fees for technical

services (not being a services (not being a
professional royalty where professional royalty where
such royalty is in the nature such royalty is in the nature
5% 2%
of consideration for sale, of consideration for sale,
distribution or exhibition of distribution or exhibition of
cinematographic film) (w.e.f. cinematographic film) (w.e.f.
1st April 2020) 1st April 2020)
194J Person engaged only in the 194J Person engaged only in the
business of operation of call 5% business of operation of call 2%
centre ( w.e.f. 01-06-2017) centre ( w.e.f. 01-06-2017)
Professional royalty where Professional royalty where

such royalty is in the nature such royalty is in the nature
of consideration for sale, of consideration for sale,
distribution or exhibition of 20% distribution or exhibition of 10%
cinematographic film and in cinematographic film and in
case of fees for any other case of fees for any other
professional services professional services
In cases where PAN is not available – TDS Rate will be 20%
To continue to avail the benefit of existing TDS rates, please submit copy of ITR-
V/Acknowledgement or ITR Intimation order (if ITR is filed) or latest Form26AS of FY 2018-19
& 2019-20 (if ITR is not filed).
Page | 2

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|| Attention All Customers ||

TCS Rate as per Special provision 206CCA

Recipient who has not filed the returns of

Recipient who has not filed the returns of

In case of fees for technical In case of fees for technical

Professional royalty where Professional royalty where

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