NEW TDS RULES EFFECTIVE FROM TODAY WEDNESDAY JULY’12021 IN INDIA

TDS U/S 206AB OF INCOME TAX ACT, 1961

Everyone is informed that from 1st July 2021, a new rule has come into force in TDS by the Income Tax Department of India. The name of the section is 206AB.

Under this rules, the any person or establishment engaged in playing / leasing / hiring of goods carriage is mandatory to fill previous 2 years ITR. i.e.INCOME TAX RETURN (ITR) FOR 2 YEARS TO BE FILLED for the FINANCIAL YEAR 2018-19(ASSESSMENT YEAR 2019-20) AND FINANCIAL YEAR 2019-20 (ASSESSMENT YEAR 2020-21)

If the truck owner has not filled INCOME TAX RETURN (ITR) for the last 2 years, then that truck
The owner's TDS will be deducted at 5% and the declaration will also not be valid.

The declaration will also be considered as variable only if the truck owner's last 2 years INCOME TAX RETURN (ITR) will be filled, otherwise 5% TDS will be deducted in the declaration also.

This clause is applicable only if deducted at source in each of these two financial years The aggregate amount of tax paid/collected is Rs.50,000/- or more. Therefore, it is requested to the people that before booking a goods vehicle they must confirm and follow this rule.

And how much TDS amount is to be deducted, write in to the freight memo and get the driver signed.

We are giving new declaration for prescribed section as under