Introduced by the Finance Act, 2021 to punish the one’s who are not filing Income tax Returns even though they are liable to file as per the act. The punishment will be by way of deduction of TDS at twice the rate than the rate mentioned in the act.
The onus of deducting TDS at a higher rate lies with the deductor on any amount paid to the “Specified Person”.
The specified person shall not include a non-resident, who does not have a permanent establishment in India.
No higher deduction, in case the TDS is deducted as per the following Sections
Rate of Deduction:
Rate will be the highest of the following:
Deductor to get the following as proof:
In order to check whether this Section be applicable for a deductee or not, the following can be obtained by the Deductor as proof:
If the specified person does not furnish the declaration or required details, the TDS should be deducted at a higher rate as per the above Section.
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