Declaration Form for not imposing TDS rate under section 206AB/206CCA

As the Finance Act, 2021 comes into force with Presidential assent on 28^th March 2021. In this Act, two new sections have been introduced with effect from 01^st July 2021 for non-filers of Income Tax Return..

As per these sections (206AB & 206CCA), the rate of TDS/TCS shall be at the double of the normal rate or 5%, whichever is higher for all the payments to be made to the vendors who have not filed Income Tax Return for the immediately two previous years and total TDS/TCS deducted for each year was Rs. 50,000/- or more.

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On letter head

Declaration Form for not imposing TDS/TCS rate as per sec 206AB/206CCA of the Income Tax Act

To
ABC Company
……………………..,
………………………….,
…………………………..

Sub: Declaration Form for not imposing TDS/TCS rate as per sec 206AB/206CCA of the Income Tax Act

With reference to above we declare as under:-

1. Name of the Individual / Entity: ……………………..

2. PAN of the Individual / Entity: ……………………….

3. ITR’s filed for the Financial Years:

FY – 2018-19                             Yes                                    No

If yes, mention ITR acknowledgement Number –

FY – 2019-20                            Yes                                    No

If yes, mention ITR acknowledgement Number –

5. If ITR’s for both the FY 2018-19 and 2019-20 are not filed:

whether aggregate TDS and TCS was Rs. 50,000/- or more

FY – 2018-19                              Yes                                   No

FY – 2019-20                             Yes                                   No

I …………………………………………..hereby declare that I am duly authorized to give this declaration and the information stated above is true to the best of my knowledge and belief. If there is any misdeclaration, I undertake to indemnify ………………………. for any interest or any penal consequences.

For XYZ Private Limited
…………………………………

(Signature)

(Name)

(Designation)