Section 206AB: Higher TDS for non-filers (no longer applies)
Section 206AB of the Income-tax Act, 1961 has no equivalent in the Income-tax Act, 2025, which applies from 1 April 2026. Checked against incometaxindia.gov.in on 13 October 2026.
Section 206AB at a glance
| Nature of payment | Special provision for higher TDS for non-filers of income-tax return (1961 Act) |
|---|---|
| Income-tax Act, 2025 | No equivalent provision |
Conditions and exceptions
- incometaxindia.gov.in shows: '206AB. [Omitted by the Finance Act, 2025, w.e.f. 1-4-2025.]' (Finance Act 2025 s.71).
- Companion TCS provision s.206CCA was also omitted (Finance Act 2025 s.73).
- No non-filer higher-rate rule found in s.397 of the Income-tax Act 2025; only the no-PAN rule applies.
Which Act applies to your payment
The 1961 Act governs a payment if it was credited or paid on or before 31 March 2026, whichever happened first. If both happen on or after 1 April 2026, the 2025 Act applies.
Source and verification
Income Tax Department: section 206AB →
Last verified on 13 October 2026. Finance Acts change TDS rates and thresholds; check the source before you deduct. This is general information, not advice for your situation.
Related
Frequently asked questions
Does section 206AB still apply?
Not to payments or credits on or after 1 April 2026. The Income-tax Act, 2025 has no equivalent provision. Where a payment was credited or made on or before 31 March 2026, the 1961 Act, including section 206AB, still governs it.
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