Changes in TDS/ TCS return applicable for FY 2021-22, including section 194Q, 206AB, 206CCA and others

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CBDT has vide notification Dt. 08.06.2021 made few changes in the rules of Income tax and introduce few changes in the TDS and TCS return as under:

“2. In the Income-tax Rules, 1962 (hereinafter referred to as the principal rules), in rule 31A, in sub-rule (4) ––

(a) for clause ‘(x)’ the following clause shall be substituted namely: –
‘(x) furnish particulars of amount paid or credited on which tax was not deducted or deducted at lower rate in view of the notification issued under sub-section (5) of section 194A or in view of exemption provided under clause (x) of sub-section (3) of section 194A.’;

(b) after clause (xiii), the following clauses shall be inserted namely: –
“(xiv) furnish particulars of amount paid or credited on which tax was not deducted in view of clause (d) of the second proviso to section 194 or in view of the notification issued under clause (e) of the second proviso to section 194;
(xv) furnish particular of amount paid or credited on which tax was not deducted in view of proviso to subsection (1A) or in view of sub-section (2) of section 196D.;
(xvi) furnish particulars of amount paid or credited on which tax was not deducted in view of sub-section (5) of section 194Q with effect from 1st day of July,2021.”.

3. In the principal rules, in Appendix II, in form 26A, in Annexure A, in clause (ii), the words “, who is a resident,” shall be omitted.

4. In the principal rules, in Appendix II, in form 26Q ––
(a) for the brackets, words, figures and letters “[See sections 192A, 193, 194, 194A, 194B, 194BB, 194C, 194D, 194DA, 194EE, 194F, 194G, 194H, 194-I, 194J, 194K, 194LA, 194LBA, 194LBB, 194LBC, 194N, 194-O, 197A and rule 31A]” the following brackets, words, figures and letters, shall be substituted namely: –
“[See sections 192A, 193, 194, 194A, 194B, 194BB, 194C, 194D, 194DA, 194EE, 194F, 194G, 194H, 194-I, 194J, 194K, 194LA, 194LBA, 194LBB, 194LBC, 194N, 194-O, 194Q, 197A, 206AA, 206AB and rule 31A]”;”

Further new code has been added in TDS return i.e. Form 26Q for implementing section 206AB as under:

“Write “U” if the deduction is on higher rate in view of section 206AB for non-filing of return of income*. ”

Also, code for non-deduction u/s 194Q has been added:

“Write “S” if no deduction is in view of the provisions of sub-section (5) of section 194Q.*”

In TCS return i.e. Form 27Q also new code has been introduced for section 206CCA as under:

“Write “I” if collection is at a higher rate in view of section 206CCA”

To read full notification CLICK HERE.

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