New sections were introduced to deduct TDS at higher rates when the amount is paid to ‘specified persons’ under Section 206AB of the Income Tax Act.

Specified Person is a person who:

·       Has not filed the income tax return (ITR) for the preceding FY, and the income tax return (not belated return) filing due date has expired and

·       Total amount of TDS/TCS in the last FY is Rs. 50,000 or more. 

TDS to specified vendors under section 206AB

If payment is made to a specified person as mentioned above, then tax shall be deducted at source (TDS) at higher of below rates:

·       2 times the rate given in the Income Tax Act or Finance Act or 5%

·      

In MS Dynamics Business Central, we do not have this process of calculating TDS for specified vendors.