TL;DR for CAs
- Higher rates apply to specified persons who have not filed returns.
- Check compliance portal / reporting utility before payment.
- Document due diligence in TDS working papers.
What it is
Sections 206AB and 206CCA mandate higher TDS/TCS where the deductee/collectee is a specified person based on return filing status.
Who it applies to
All deductors/collectors making payments liable to TDS/TCS.
Key provisions
- Definition of specified person
- Higher of prescribed rate multiples or 5%
- Portal verification process
Practical tips for CAs
Automate PAN status checks before vendor payments. Re-check quarterly.
Common mistakes
Relying on outdated lists; applying higher rates to exempt cases incorrectly.
For general guidance only. Verify with the latest Finance Act, GST notifications, and ICAI guidance notes before advising clients.