Non applicability of higher TDS rate

Dear Customer,

The Government of India (GoI) has introduced section 206AB in the Income-tax Act, 1961 (Act), which mandates higher Tax Deducted at Source (TDS) in case of non-filing of income tax returns (ITR) by a taxpayer for two immediately preceding financial years (FY). The new provisions are applicable from July 1, 2021.

In case of failure to file ITR by a taxpayer, the TDS rate applicable will be higher than the below:

  • Twice the rate specified under the Act; or
  • Twice the rate or rates in force; or
  • TDS @ 5%

Please note, Shreejee Electronics Private Limited (PAN: AAACS1537P) has duly filed its ITRs for FY 2018-19 and FY 2019-20.

Financial YearITR Form No.ITR Filing DateAcknowledgement No.
2018-2019ITR-6Oct 30, 2019235336171301019
2019-2020ITR-6Jan 11, 2021200804141110121
Accordingly, provisions of section 206AB would not apply to Shreejee Electronics Private Limited; hence, higher TDS should not be deducted while making payments to us.

Further, the company shall be filing its ITR for FY 2020-21 in due course as per the timeline stipulated in section 139(1) of the Act.

You may bookmark this page for future reference as this page will be kept up-to-date with newer information on the commencement of the new financial year and subsequent filing of the Income Tax returns.

Please feel free to contact us in case of any queries related to taxation and finance.

Regards.

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