Understanding Section 206AB in Income Tax is essential for individuals and businesses dealing with tax deductions at source (TDS). Introduced to curb tax evasion, this section ensures that those who fail to file their income tax returns on time face higher TDS rates.
Why is Section 206AB Important?
Ensures Tax Compliance – Encourages timely tax filing by penalizing defaulters with higher TDS.
Applies to Non-Filers – If an individual or entity hasn’t filed their ITR for the past two years and TDS exceeds ₹50,000, they will be charged a higher tax rate.
Higher TDS Rates – The rate is either twice the regular TDS rate or 5%, whichever is higher.
Covers Various Transactions – This applies to payments like professional fees, rent, dividends, and contractual payments.
To navigate this tax provision effectively, SMC has explained this very well on "Understanding Section 206AB in Income Tax", helping taxpayers stay informed and compliant.
Being aware of Understanding Section 206AB in Income Tax can help you avoid unnecessary deductions and legal complications. Stay updated and ensure tax compliance!