India: Guidance on administration of new provisions introduced by Finance Act, 2021

The administration of two new provisions introduced by the Finance Act, 2021 with effect from 1 July 2021

The administration of two new provisions with effect from 1 July 2021

The Central Board of Direct Taxes (CBDT) issued an amended Circular providing guidance regarding the administration of two new provisions introduced by the Finance Act, 2021 with effect from 1 July 2021.

The new provisions prescribe tax deduction (section 206AB) or tax collection (section 206CCA) at a higher rate in the case of certain non-filers of return of income, or “specified persons.” The higher rate is twice the prescribed rate or 5%, whichever is higher.

The Circular provides, among other things, that tax administrators need to check a person’s permanent account number only at the beginning of the financial year to determine if such person is a specified person.

Read a May 2022 report [PDF 459 KB] prepared by the KPMG member firm in India

 

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