India’s Central Board of Indirect Taxes and Customs has issued Notification No. 1 of 2021: Compliance Check Functionality for Section 206AB & 206CCA of Income-tax Act 1961. The notification concerns the new penal provisions regarding tax deducted and collected at source (TDS/TCS) that apply from 1 July 2021. The new provisions generally provide that where the recipient of income has not filed their income tax returns in the prior two years (specified persons), the withholding agent paying income subject to TDS/TCS is required to withhold tax at double the specified rate or 5%, whichever is higher. For this purpose, Notification No. 1 of 2021 announces the introduction of a new compliance check functionality that income payers can use to check whether the recipient of income is a specified person and, therefore, the increased withholding applies.
Source Orbitax
Latest Posts in "India"
- GST Reduction on Fruit Drinks Excludes Colas; Prices Remain Unchanged for Carbonated Beverages
- Supreme Court Stays Retrospective GST Penalty, Examines Applicability to Non-Taxable Persons
- India Unveils Simplified GST Rate Structure
- GST 2.0: Key Changes, New Rates, and Business Impact Explained
- Guide to GST Refunds for Unregistered Persons: Cancelled Service Contracts Explained
