Special Provision for TDS for Non Filling of Inome Tax Return from 1.07.2021 inserted by Finance Act 2021

Special Provision for TDS for Non Filling of Inome Tax Return from 1.07.2021 inserted by Finance Act 2021


  • This provision is applicable to each and every deductor who is required to deduct TDS under this Act from the person who has not filed his Income Tax Returns (ITR) in preceding 2 years immediately preceding the previous year for which Tax is required to be deducted and total of TDS and TCS in his case is Rs.50,000/- or more in each of these 2 previous year and due date under section 139(1) of filing of ITR has been expired for such previous years.
  • For Example if TDS is required to be deducted for P.Y 2021-22 then the deductor are required to check the ITR for PY 2019-20 and 2020-21 respectively.

Rate of Deduction:

Higher of the following:

  • At Twice the rate specified in the relevant provision of the Act or

At twice the rate or rates in force or

At the rate of 5% In case the deductee does not furnish his Pan then the rate shall be 20 %.


192APremature withdrawal from the accumulated balance of the provident fund, which is taxable in the employee’s hands
194BWinning from the card game, crossword, lottery, puzzle, or any other games
194BBWinning from a horse race
194LBCIncome against investment in the securitisation trust
194 NPayments of certain amount/amounts in cash

Conclusion :-

The above section shall be attracted if both the condition has to be satisfied cumulatively-

  1. Non filling of ITR for 2 preceding previous Year immediately prior to the Previous year for which payment is required to be made


  • TDS or TCS  is Rs 50,000/- or More

Consequences in case of non-compliances:

If the deducter fails to comply with above mentioned provisions then the following no cosequnces will follow :-

  1. He is considered as “Assessee in Default”
  2. Levied penalty for non-compliance of TDS Provisions under section 201A
  3. Disallowance of Expenditure
  4. Interest on late payment and late fee

Leave a Comment

Your email address will not be published. Required fields are marked *

join us
Scroll to Top