New Tax Provisions: Sections 206AB and 206CCA

Higher Rates for Non-filers: Sections 206AB and 206CCA of the Income Tax Act enforce higher TDS and TCS rates for individuals and buyers who haven't filed their income tax returns. Encouraging Compliance: Aimed at promoting timely filing of returns and adherence to tax regulations, these provisions push for increased tax compliance.

Effective Implementation: Implemented from July 1st, 2021, these sections bolster tax administration by ensuring stricter adherence to filing requirements. Deduction and Collection Rates: Tax deduction or collection will be at higher rates of twice the specified rate or 5%, whichever is higher.

Non-resident Exemption: Exempts non-residents without a permanent establishment in India from these provisions. Exceptions: Certain incomes like salary, EPF withdrawal, lottery winnings, etc., already subjected to TDS, are excluded from section 206AB.

Criteria for Applicability: Applies to individuals who haven't filed their returns for the past two years, with aggregate TDS or TCS exceeding INR 50,000 each year. Promoting Compliance: These measures push individuals to fulfill their tax obligations timely, fostering a culture of compliance in the taxpayer community.