TDS is to be deducted at higher rate if the following conditions are satisfied:
- Deductee has not filed income tax returns for last 2 years.
- Time limit for filing original return has expired.
- The aggregate amount of TDS is Rs. 50,000/- or more in each of the previous 2 years.
If the above conditions are satisfied, then TDS is required to be deducted at twice the rate applicable as per relevant section or 5% whichever is higher. In case PAN of the deductee is not available, TDS shall be deducted at 20% irrespective of the amount & status of filing income tax returns.
The above provisions are not applicable for the following sections:
Section 192 – TDS on salary
Section 192A – TDS on withdrawal from EPF
Section 194B – TDS on winning from lotteries, crossword puzzles, etc.
Section 194BB – TDS on winning from race horses.
Section 194LBC – TDS on income in respect of investment in Securitization Trust
Section 194N – TDS on cash withdrawal
Following confirmation can be obtained from the deductees, whose TDS exceeds Rs. 50,000/- in each of the 2 preceding years, in respect of filing of income tax returns.
To,
(Name of the Payer)
Dear Sir,
Subject: Declaration confirming filing of Income Tax Return for immediate two preceding years
This is in respect to payments due or payments to be made to us for Financial Year 2021-22 (period from 1 April 2021 to 31 March 2022). In this regard, with respect to provision of section 206AB of the Income-tax Act, 1961 (‘the Act’). I, Ms/Mr/M/s. _________________ in capacity of Self/ Proprietor/ Partner/ Director/ Authorised signatory of _________________ (Name of entity) having PAN ______________ (PAN of Entity) registered office/permanent address at _____________________________________________________ do hereby declare the following
Details of Income tax returns filed are as under
| Financial Year | Due Date of Filing | Date of Filing | ITR Ack. No. |
| 2019-20 | |||
| 2018-19 |
