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 Year||ITR Form No.||ITR Filing Date||Acknowledgement No.|
|2018-2019||ITR-6||Oct 30, 2019||235336171301019|
|2019-2020||ITR-6||Jan 11, 2021||200804141110121|
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.
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