What is the status of Section 206CCA and Section 206AB in FY 2026-27?

Sections 206AB and 206CCA (which levied higher TDS/TCS rates on non-filers of income tax returns) have been omitted and repealed under the Income Tax Act. Taxpayers are no longer required to apply higher non-filer tax rates for current transactions.

Should I remove 'Specified Person' flags in Tally Prime party ledgers?

Yes. For current financial year entries (FY 2026-27), you should decommission higher-rate overrides and reset TCS/TDS nature of goods ledgers back to standard statutory rates.

Do prior period audits still require proof of Section 206CCA compliance?

For statutory audits or correction statements involving earlier financial years (FY 2024-25 or 2025-26), dated compliance check evidence showing whether a vendor was a 'Specified Person' should be retained for statutory audit records.

How does TrulyInvoice help keep purchase tax ledgers compliant?

TrulyInvoice auto-extracts item descriptions, tax values, and GST rates from supplier purchase bills, auto-posting verified F9 purchase vouchers to Tally Prime in 15 seconds.

Section 206CCA / 206AB TCS Higher Rates in Tally (2026)

Managing TCS (Tax Collected at Source) and TDS (Tax Deducted at Source) in Tally Prime requires staying current with Finance Act amendments. Sections 206AB and 206CCA, which previously mandated 2x higher tax rates for non-filers of income tax returns ("Specified Persons"), have been repealed under the Income Tax Act.

Quick Answer: Are Section 206CCA & 206AB Non-Filer Higher TCS Rates Active in 2026?

TrulyInvoice ensures purchase voucher tax ledgers in Tally Prime comply with current tax laws. Sections 206AB and 206CCA (which levied 2x higher TDS/TCS for non-filers of income tax returns) were omitted under the Income Tax Act 2025/2026. Tally Prime users should decommission these higher-rate logic checks in purchase and sales ledgers.

Legal Status: Sections 206AB & 206CCA are repealed/omitted.
Action Required: Decommission 'Specified Person' higher-rate flags in Tally ledgers.
Standard Rates: Apply standard statutory TCS/TDS rates for current transactions.
TrulyInvoice auto-posts compliant F9 purchase vouchers to Tally Prime in 15s.

Decommissioning Higher Rate Ledgers in Tally Prime

Go to Gateway of Tally > Alter > Ledger and select your supplier/customer party ledger.
Remove any custom Specified Person flags or higher rate overrides.
Reset TCS Nature of Goods or TDS Duty Ledgers to standard statutory rates (e.g. 0.1% under Section 206C(1H) or 194Q).
Save configuration with Ctrl+A.

Automated Purchase Tax Posting with TrulyInvoice

Staying compliant with evolving TDS/TCS rates on vendor bills is effortless with TrulyInvoice.

TrulyInvoice uses AI to parse supplier purchase invoices, auto-extracting line items, GSTINs, and tax values to post verified F9 Purchase Vouchers to Tally Prime in 15 seconds via the local Port 9000 connector.

Section 206CCA & 206AB TCS Higher Rates in Tally Prime (2026 Statutory Update)

Quick Answer: Are Section 206CCA & 206AB Non-Filer Higher TCS Rates Active in 2026?

Decommissioning Higher Rate Ledgers in Tally Prime

Automated Purchase Tax Posting with TrulyInvoice

Stop Manual Voucher Entry.