Declaration format under section 206AB
To,
ABC Private Limited,
[Address]
Newly inserted section 206AB [206CCA]* of the Income tax act provides for deduction of tax (TDS) [or collection of tax] at the higher rate as prescribed u/s 206AB [206CCA]* in case of payments to “Specified Person”. As per section 206AB/206CCA specified person is person who satisfies all of the following conditions:
#a. A person who has not furnished the return of income for the assessment year relevant to the previous year immediately preceding the financial year in which tax is required to be deducted, for which the time limit for furnishing the return of income under sub-section (1) of section 139 has expired for the said previous year; and
b. The total TDS and TCS is Rs 50,000 or more in the said previous year.
I/We undersigned, Proprietor/Partner/Director* of M/s________________ hereby declare that, My/Our* organisation/entity not falling under the criteria of specified person as stated under section 206AB and I/We have filed Income tax return within time limit specified under section 139(1) for the previous year immediately preceding to the previous year 2021-22* [ or In the process of filing Income tax return for the previous year for which time limit u/s 139(1) not yet expired]* and the aggregate of tax deducted at source and tax collected at source is less than rupees fifty thousand in such previous year.
I/We* ___________________hereby declare that the information given above is complete and correct in all respects. I also undertake to indemnify your organisation for any loss/liability may arise in the event of the above information being incorrect.
I/we have enclosed herewith necessary documents, to support this declaration.
FOR XYZ PRIVATE LIMITED
__________________
Authorised Signatory
DATE:
PLACE:
*Strike out whichever is not applicable
**Format of declaration is not specified under the Income tax act. Format is prepared on the basis of wording of section 206AB/206CCA
As per Circular 10/2022 dated 17/05/2022 in order to check whether deductee is specified person u/s 206AB/206CCA or not you must check PAN of such deductees @ https://report.insight.gov.in/reporting-webapp/portal/homePage
#This clause has been amended by finance act 2022. Thus it can be seen that now a person can become a specified person for default in one year instead of earlier provision of default in two years.
Read all about section 206AB/206CCA here
