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Section 206AB TDS and Section 206CCA TCS compliance update

Section 206AB TDS and Section 206CCA TCS compliance update

New provision namely Section 206AB has been added by Finance Act 2021 which shall come into force from 1 July, 2021. The said section provides that if any amount is being paid to the specified person, then tax shall be deducted at higher of the following rates:

  • At twice the rate specified in the relevant provision of the Act
  • At twice the rate or rates in force; or
  • At the rate of 5%

Comparative analysis of the above said new sections has been attached below for reference.

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