How to use ITR Compliance Check Tool for Section 206AB & 206CCA

How to use ITR Compliance Check Tool for Section 206AB & 206CCA

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Article on How to use ITR Compliance Check Tool for Section 206AB & 206CCA https://studycafe.in/how-to-use-itr-c...

What is the legal framework of ‘Compliance Check for Section 206AB & 206CCA’ functionality?

Via Finance Act 2021, Section 206AB and 206CCA are inserted in the Income-tax Act,1961 (effective from 1st July 2021). These sections impose a higher TDS/TCS rate on the “Specified Persons”, as defined in these sections.

In view of the above, Income Tax Department has facilitated a new functionality “Compliance Check for Section 206AB & 206CCA” to facilitate tax deductors/collectors to verify if a person is a “Specified Person” as per section 206AB & 206CCA. This functionality is made available through Reporting Portal of the Income-tax Department (https://report.insight.gov.in).

Who is a specified person as section 206AB and 206CCA?

As per section 206AB & 206CCA, Specified Person,

“means a person who has not filed the returns of income for both of the two assessment years relevant to the two previous years immediately prior to the previous year in which tax is required to be deducted, for which the time limit of filing return of income under sub-section (1) of section 139 has expired; and the aggregate of tax deducted at source and tax collected at source in his case is rupees fifty thousand or more in each of these two previous years:

Provided that the specified person shall not include a non-resident, who does not have a permanent establishment in India.

Explanation- For the purposes of this sub-section, the expression “permanent establishment” includes a fixed place of business through which the business of the enterprise is wholly or partly carried on.”

Who can use the “Compliance Check for Section 206AB & 206CCA” functionality?

Principal Officers of tax deductors & collectors who are registered with the Reporting Poral though TAN can use the functionality “Compliance Check for Section 206AB & 206CCA”.

What are the various modes available in the functionality for verifying the Specified Person status of a PAN as per section 206AB & 206CCA?

Through the functionality, principal officers of registered tax deductors or collectors can verify if any person (PAN) is a “Specified Person” as defined in Section 206AB & 206CCA, by searching the PAN(s) through the following two modes:

PAN Search: To verify for single PAN
Bulk Search: To verify for PANs in bulk

How to access the functionality in “PAN Search” mode and what is the output displayed?

Steps to use the functionality in PAN Search mode are as below:

Step 1: Select PAN Search tab under Compliance Check for Section 206AB & 206CCA functionality.

Step 2: Enter valid PAN & captcha code and click Search.

Through the functionality, principal officers of registered tax deductors or collectors can verify if any person (PAN) is a “Specified Person” as defined in Section 206AB & 206CCA, by searching the PAN(s) through the following two modes:

PAN Search: To verify for single PAN
Bulk Search: To verify for PANs in bulk

2. How to access the functionality in “PAN Search” mode and what is the output displayed?

Steps to use the functionality in PAN Search mode are as below:

Step 1: Select PAN Search tab under Compliance Check for Section 206AB & 206CCA functionality.

Step 2: Enter valid PAN & captcha code and click Search.

#SECTION206AB #SECTION206CCA #STUDYCAFE