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TDS · effective 1 April 2026

Section 206AB under the
Income-tax Act, 2025

Higher TDS rate for non-filers of income-tax returns

Income-tax Act, 1961
206AB
Income-tax Act, 2025
NO CORRESPONDING PROVISION
ConfirmedSubstance changedTaken from the ICAI Direct Taxes Committee concordance and independently checked against the bare statutory text of the Income-tax Act, 2025.

Topic

Higher TDS rate for non-filers of income-tax returnsTDS provisions under the Income-tax Act, 2025 (Act 30 of 2025).

What changed

SUBSTANTIVE: there is no non-filer penal-rate provision in the 2025 Act. Important nuance though — this is NOT a change introduced by the 2025 Act. Sections 206AB and 206CCA were already omitted from the 1961 Act by the Finance (No. 2) Act, 2024 with effect from 1 October 2024, so the 2025 Act simply never carried them forward. Deductors should not build any 'specified person' non-filer check for tax year 2026-27 onwards.

Source

Zero occurrences of '206AB' or '206CCA' anywhere in the 818-page ICAI bare text of the Income-tax Act, 2025. The ICAI concordance table likewise contains no row mapping 206AB or 206CCA.

Open the source document →

CBDT publishes its own correspondence utility on incometaxindia.gov.in and that is the authority. Spot-check anything high-stakes there before you rely on it.

Frequently asked

Is there a Section 206AB equivalent in the Income-tax Act, 2025?

No. There is no non-filer penal-rate provision anywhere in the 2025 Act, and no concordance row for 206AB or 206CCA. Deductors should not build a 'specified person' non-filer check for tax year 2026-27 onwards.

Is that a change the 2025 Act made?

Not really. Sections 206AB and 206CCA were already omitted from the 1961 Act by the Finance (No. 2) Act, 2024 with effect from 1 October 2024. The 2025 Act simply never carried the provision forward.

Still cite section 206AB for
Income earned up to 31 March 2026 — that is FY 2025-26, Assessment Year 2026-27, governed by the Income-tax Act, 1961 even though you file it during 2026.
Cite the new Act for
Income earned from 1 April 2026 — Tax Year 2026-27 onwards, governed by the Income-tax Act, 2025. Tax deducted on payments made on or after 1 April 2026 must be reported under the new section 393 table references and new challan/return codes. Quoting a legacy section such as 194C or 194J triggers validation failure.
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206AA · Higher TDS/TCS rate where PAN is not furnished
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206C · Tax collection at source (TCS)
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This is a navigational aid for the 1961 → 2025 transition, not tax advice. It helps you find the right place in the new Act when you already know the old section. Confirm every citation against the bare Act and against CBDT's own correspondence utility before relying on it in a return, certificate, notice reply or opinion. The source text used here is the Act as passed, so any rate or threshold amended by the Finance Act, 2026 is not reflected; section numbers are unaffected.

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