Let’s
have a glimpse of both the sections:
|
|
Sec. 206AB |
Sec 206CCA |
|
Section particulars |
Special
provision for deduction of tax at source for non filers of income tax return |
Special
provision for collection of tax at source for non filers of income tax return |
|
Applicability |
Applicable in case of person who: (a) Has not filed ITR for preceding 2 previous years whose time limit for filing ITR u/s 139(1) has been expired and (b)
TDS/ TCS
> ₹ 50,000 in each of above mentioned years. |
|
|
Non- applicability |
(i)
In case where TDS is required
to be deducted u/s 192, 192A, 194B, 194BB, 194LBC or 194N. (ii) In
case of non-residents who do not have a P.E. in India. |
(i) In
case of non- residents who do not have a P.E. in India. |
|
Rate |
(a)
2
* Applicable rate (b)
2
* rate in force (c)
5% Whichever
is Higher |
(a)
2
* Applicable rate (b)
5% Whichever
is Higher |
|
It
is clearly evident from the above rates that minimum TDS/ TCS rates applicable
will be 5% p.a. |
||
The Bare text of
the above two sections is as under:
206AB. Special
provision for deduction of tax at source for non-filers of income-tax return
(1)
Notwithstanding anything contained in any other provisions of this Act, where
tax is required to be deducted at source under the provisions of Chapter XVIIB,
other than sections 192, 192A, 194B, 194BB, 194LBC or 194N on any sum or income
or amount paid, or payable or credited, by a person (hereafter referred to as
deductee) to a specified person, the tax shall be deducted at the higher of the
following rates, namely:––
(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.
(2) If the
provisions of section 206AA is applicable to a specified person, in addition to
the provision of this section, the tax shall be deducted at higher of the two
rates provided in this section and in section 206AA.
(3) For the
purposes of this section “specified person” means a person who has not filed
the returns of income for both of the two assessment years relevant to the two
previous years immediately prior to the previous year in which tax is required
to be deducted, for which the time limit of filing 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 each of these two previous years:
Provided that the
specified person shall not include a non-resident who does not have a permanent
establishment in India.
Explanation.––For
the purposes of this sub-section, the expression “permanent establishment”
includes a fixed place of business through which the business of the enterprise
is wholly or partly carried on.’.
206CCA. Special
provision for collection of tax at source for non-filers of income-tax return
(1) Notwithstanding
anything contained in any other provisions of this Act, where tax is required
to be collected at source under the provisions of Chapter XVII-BB, on any sum
or amount received by a person (hereafter referred to as collectee) from a
specified person, the tax shall be collected at the higher of the following two
rates, namely:––
(i)
at twice the rate specified in the relevant provision of the Act; or
(ii) at the rate of five per
cent.
(2)
If the provisions of section 206CC is applicable to a specified person, in
addition to the provisions of this section, the tax shall be collected at
higher of the two rates provided in this section and in section 206CC.
(3)
For the purposes of this section “specified person” means a person who has not
filed the returns of income for both of the two assessment years relevant to
the two previous years immediately prior to the previous year in which tax is
required to be collected, for which the time limit of filing 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 each of these two previous years:
Provided
that the specified person shall not include a non-resident who does not have a
permanent establishment in India.
Explanation.––For
the purposes of this sub-section, the expression “permanent establishment”
includes a fixed place of business through which the business of the enterprise
is wholly or partly carried on.’.
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