Finance Act, 2021 inserted two new sections 206AB and 206CCA

Finance Act, 2021 inserted two new sections 206AB and 206CCA in the Income-tax Act 1961 which takes effect from 1st day of July 2021.

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These sections mandate tax deduction or tax collection at higher rate in case of certain non-filers (specified persons).

Higher rate is twice the prescribed rate or 5%, whichever is higher.

With this new functionality, the Government has reiterated its commitment to ease the compliance burden of taxpayers.