Section 206AB – TDS on Non – filers of Returns

Updated: Jun 28

Applicability date 01.07.2021

A person who has Not filed Income Tax returns of immediately preceding TWO financial years within time limit prescribed u/s 139(1) and aggregate of TDS deducted and TCS collected in his case is Rs.50,000 or more in each of the two preceding years

Rate of deduction of TDS under section 206AB

TDS under section 206AB will be deducted at higher of the following rates-

  • Twice the rate as specified under the relevant provision of the Income Tax Act; or

  • Twice the rate/ rates in force; or

  • At the rate of 5%.

Section 206AB do not apply to the following

  • Non-Resident who does not have a PE ( Permanent Establishment) in India

  • Section 192: TDS on Salary

  • Section 192A: TDS on withdrawal from EPF

  • Section 194B: TDS on winning from lotteries, crossword puzzles, etc

  • Section 194BB: TDS on winning from racehorses

  • Section 194LBC: TDS on income in respect of investment in Securitization Trust

  • Section 194N: TDS on cash withdrawal


Section 206AB Declaration format


For Individuals


Declaration Format B_Individual Payee
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Download DO • 35KB

For Non Individuals

Declaration Format A_non-Individual Paye
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Download • 37KB

Note

If both the provisions of section 206AA and section 206AB are applicable, that is, deductee has neither furnished his PAN to the deductor nor has he furnished his return of income for the specified periods, the tax shall be deducted at the rates provided in section 206AA or section 206AB, whichever is higher


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