Dear Experts,
Please advise how to identify contractors or vendors for higher TDS deduction and what are the criteria
The tax rule relating to the TDS and TCS has come in to force from 01.07.2021 under which the the taxpayers who has not filed their Income Tax Returns for the past two Financial Years shall have to pay higher tax.
With the insertion of these sections namely Section 206AB and Section 206CCA w.e.f. 1st July 2021, it requires the specified persons to deduct TDS and TCS at a higher rates.
Tax Deducted at Source or Tax Collected at Source will be charged at double the rate specified in the relevant provision of the IT Act or 5 %, whichever higher.
To help the taxpayers of TDS and TCS to follow the Compliances of these sections, the IT Department has introduced a new “Compliance Check Functionality for Section 206AB and 206CCA”.
This functionality is already functioning through the reporting portal of the income tax department.
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