Higher rate of TDS in the case of Sec 206AA and 206AB:

Sec 206AA:

1. Section 206AA provides that where any person is entitled to receive any income on which tax is deductible at source, he is required to furnish his PAN to the deductor. In case the PAN is not furnished, the tax shall be deducted at a higher rate under section 206AA.

2. If the recipient fails to furnish his PAN to the deductor then tax shall be deducted at the highest of the following rates:
(a) At the rate specified in the relevant provision of the Income-tax Act.
(b) At the rate or rates in force; or
(c) At the rate of 20%

3. The rate of 20% shall be reduced to 5% in the case where:
a) Tax is required to be deducted by an e-commerce operator under section 194-O; or
b) Tax is required to be deducted by a buyer under section 194Q.

4. The provisions of section 206AA shall not be applicable in respect of the following income received by a non-resident (or a foreign company):
(a) Interest on bonds referred to under Section 194LC;
(b) Specified payments as referred under Rule 37BC; and
(c) Income in respect of investment in Category I or Category II AIFs as referred under Rule 114AAB.

Sec 206AB:
1. As per section 206AB, where any person fails to furnish his return of income for a specified period and tax deducted/collected during that period exceeds the specified limit, the deductor shall deduct the tax at a higher rate under section 206AB.

2. The provisions of section 206AB apply if the following conditions are satisfied:
a) Deductee has not filed 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;
b) The due date to file the return of income of such assessment year, as prescribed under section 139(1), has expired; and
c) The aggregate amount of tax deducted and collected at source is Rs. 50,000 or more in the said previous year.

3. Where tax is required to be deducted under this provision, the tax shall be deducted at the higher of the following rates:
a) Twice the rate specified in the relevant provision of the Act; or
b) Twice the rate or rates in force; or
c) 5%.

4. Checking the IT filing status:
The Income-tax Department has issued a new functionality “”Compliance Check for section 206AB & 206CCA”” on https:// report. insight. gov. in to check the IT Return filing status of the deductee.
The tax deductor can feed the single PAN or multiple PANs of a person and get a response from the functionality if such a person is a specified person for the purpose of section 206AB.