206AB TDS


Mihir Thakkar

2021-07-15 14:43:09


Section 206AB mandates TDS at a higher rate for non-filing of returns in the previous two financial years for certain notified taxpayers referred to as 'Specified Persons.

Who is a specified person?

A specified person refers to a person who satisfies the following 2 conditions: -

  1. He has not filed the income tax returns for two previous financial years immediately before the previous year in which tax is required to be deducted or collected. For example, for the current financial year 2021-22, previous years would be 20 18-19 and 2019-20
     
  2. The aggregate of tax deducted at source (TDS) and tax collected at source (TCS) is 50,000 INR or more in each of these two previous years.

How StrategicERP has configured find the below steps:

1.) In Vendor registration One Combo field is given of Specified person yes or no.. if yes then it means that above vendor fulfilling above two condition and is applicable or higher rate of interest

2)Now System will automatically deduct the higher rate of tds i.e 5% or *2 of existing rate whichever is higher..(minimum 5%)

 

3)To get this working need to install the below patch

For Remedium Product--4594

For Infra Product--2240