TDS Compliance Simplified: Section 206AB Omitted from 1st April 2025

Friends,

Section 206AB Omitted
Starting 1st April 2025, NGOs will no longer need to check for Specified Persons before deducting higher TDS. This section, which mandated a higher TDS rate for individuals who had not filed their Income Tax return and had TDS/TCS over ₹50,000, has been removed.

Impact on NGOs

• No need to use the Income Tax portal’s compliance check tool for Specified Persons.
• Standard TDS rates will apply without additional verification.

What About Section 206CCA?

• The higher TCS provision under Section 206CCA has also been removed. While this was not widely used by NGOs, it is good to note.

Have questions regarding these changes? Leave a comment on our forum discussion below:

Section 206AB of Income Tax Act omitted from 1.4.2025

Section 206AB of Income Tax Act which provides for higher rate of TDS for a Specified Persons i.e. a person who has not filed Income Tax return for the previous year and whose TDS/TCS is more than Rs.50000/- has been omitted. Therefore, Accounts team of NGOs would not need to use the compliance check utility on Income Tax portal to ascertain Specified Person and deduct higher TDS wef 1.4.2025. Same provision for TCS under Section 206CCA for a Specified Person which is not used by most NGOs has…

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PATTIC

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