Declaration Format under Section 206AB of Income Tax Act

By | April 28, 2022

Details on Declaration Format under Section 206AB of Income Tax Act

With the season of rains, it looks like there’s the season of latest amendments! To capture those into the tax net, who owns assessable and taxable income, except for some or alternative reason, don’t file ITR, Government is introducing a new provision u/s 206AB to deduct TDS at higher rates.


This provision is applicable to each and every deductor who has to deduct TDS under this Act from “Specified Person”.

Here, “Specified Person” suggests that the person who has not filed his IT Returns in 2 years straight away preceding the previous year that Tax is needed to be subtracted and the total of TDS and TCS in his case is Rs.50,000/- or more than that every of the year and a certain due date of filing of ITR has expired for such years. For. For example, If Tax is needed to be subtracted for July 2021, (F.Y,2021-22), relevant straightaway 2 preceding previous years that ITR filing needed to be checked in 2018-19 and 2019-20 (A.Y.2019-20 and AY 2020-21 severally )as the closing date for filing ITR of Previous Year 2020-21 isn’t expired.

Rate of Deduction:

Higher of following:

  •  Twice the rate as per specified within relevant provision of the Act
  •  At twice the rate or rates effective.
  • At the  rate of 5%.
  • At the speed 20% (in case of PAN non-furnishing )

 Mechanism to Verify ITR knowledge of Deductee:

  •  Just in case of TDS provisions, primary concern is on deductor/ money handler to deduct TDS provisions at applicable rates. Otherwise he’s thought-about as “assessee in default”.

 In absence of a certain mechanism to verify ITR filing data , it’s steered to get declaration from the Deductee.

Format of Self Declaration u/s 206AB of The Income Tax  Act, 1961 concerning the deduction of TDS


Name and Address of the Deductor (Payer)

 Dear  Sir,

Subject: Self Declaration u/s 206AB of Income Tax Act, 1961 concerning the deduction of TDS

       With relation to the subject discussed above, we have a tendency to (Name of Supplier/Deductee/ Payee) here by making sure that; we’ve filed Income Tax Returns for below mentioned instantly preceding money Years relevant to the year of declaration.

F.YIn case the amount of TDS is more than 50,000ITR Filing Due DateActual Date of Filing ITRITR-V Ack No

We have noticed and understood the provisions of Section 206AB of the Act and connected applicable rules, notifications, circulars. Furthermore, the above-mentioned PAN and IT returns details ar correct

. We tend to authorize (Name of Deductor) to recover the differential tax at higher rates on the side of applicable interest and penalties just in case the above-mentioned data is well-tried to be incorrect.

 With submitting this declaration, it’s kindly requested to consider us to be compliant with the needs of the Sec.206AB of the Act.

Yours Truly,

Name of Supplier/ vendor



It’s anticipated that; CBDT can shortly build an obtainable facility to verify the ITR filing standing of the deductee so as to create this swimmingly practicable. Presently, such a facility is out there to banks/ post offices to befit Provision of Sec.194N.

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