Do I still need a 206AB/206CCA non-filer declaration from vendors?

No. Sections 206AB and 206CCA (higher TDS/TCS for ITR non-filers) were omitted by the Finance Act 2025. No non-filer declaration is required from FY 2025-26 onwards.

Which TDS declarations do I still need?

You still use the Section 194Q buyer intimation (optional), the MSME / Section 43B(h) vendor declaration, Section 197 lower-deduction certificates, and Form 121 (which replaces 15G/15H from FY 2026-27).

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TDS/TCS Declarations You No Longer Need (FY 2025-26)

Q: Is TCS on sale of goods under 206C(1H) still applicable?

No. Section 206C(1H) was withdrawn with effect from 1 April 2025. Sellers no longer collect TCS on sale of goods; the buyer's TDS under Section 194Q continues.

2026-06-29 · 4 min read · by a CA firm

A lot of TDS onboarding paperwork that businesses still collect is now redundant. Three provisions were removed with effect from 1 April 2025, yet many vendor packs and template sites have not caught up. Here is what to stop collecting, what replaces it, and what you still genuinely need.

206AB & 206CCA — removed (no more non-filer declaration)

Sections 206AB and 206CCA required higher TDS/TCS where the deductee had not filed their income-tax return. They were omitted by the Finance Act 2025. From FY 2025-26 onwards, no non-filer declaration is required — you can stop collecting the annual "ITR-filing status" declaration from vendors, and you no longer need to check filing status on the compliance portal before deducting.

206C(1H) — removed (sellers stop collecting TCS on goods)

Section 206C(1H) (TCS on sale of goods above ₹50 lakh) was withdrawn from 1 April 2025. Sellers no longer collect this TCS; the buyer’s TDS under Section 194Q continues. As a result, the old 194Q / 206C(1H) "cross-declaration" that buyers and sellers used to exchange is now largely redundant — only a one-way 194Q intimation remains useful.

What you still need

Four items remain live and worth keeping in your onboarding pack:

Section 194Q buyer intimation (optional) — a courtesy letter recording that the buyer (turnover > ₹10 crore) will deduct 0.1% on purchases over ₹50 lakh. MSME / Section 43B(h) declaration — unaffected and still important to manage the 15/45-day payment-disallowance rule. Section 197 certificate handling — lower/nil-deduction certificates continue as before. Form 121 — which replaces Form 15G/15H from FY 2026-27.

Ready-to-use versions of each are on the Downloads page — the 194Q intimation, the MSME 43B(h) declaration and the Section 197 tracker.

Why this matters

Collecting declarations for provisions that no longer exist wastes vendor goodwill and signals that your compliance is out of date. Cleaning these out of your onboarding pack is a quick, current fix — and exactly the kind of detail competitors’ stale templates still get wrong.

Frequently asked questions

Do I still need a 206AB/206CCA non-filer declaration? No — both sections were omitted by the Finance Act 2025; nothing is required from FY 2025-26.

Is TCS on sale of goods under 206C(1H) still applicable? No — withdrawn from 1 April 2025. Buyers continue Section 194Q TDS instead.

Which declarations do I still need? 194Q intimation (optional), MSME 43B(h), Section 197 certificates, and Form 121 (ex-15G/15H).

See the 194Q guide for the buyer’s position, and Form 121 explained for the 15G/15H change.

This article is general information for FY 2025-26 / 2026-27, not advice for your specific case. Verify against the latest law or talk to a CA.