Finance Act 2021 has made three key changes in TDS norms which are purchase of goods, pension income of eligible senior citizens and accelerated TDS rates for non-filers.
The first and third provisions are applicable from July 1, while second one applies for the pension income of this entire financial year.
Section 194Q and 206 AB – 206 CCA
Newly inserted section 194Q related to deduction of tax at source on payment of certain sum for purchase of goods.
Section 206AB and 206CCA prescribes special provision for deduction of tax at source for non-filers of income-tax return.
Tweet from IT department
“CBDT issues Circular No. 11 of 2021 dated 21.06.2021 on implementation of section 206AB & 206CCA wrt higher tax deduction/collection for certain non-filers. New functionality issued for compliance checks for sec 206AB & 206CCA to ease the compliance burden of tax deductors/collectors.”
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