If you want to know everything about the compliance check functionality for the section 206AB & 206CCA then you are at the right place
The Income Tax Act of 1961 was updated by the Finance Act of 2021 to include two new sections: 206AB and 206CCA. These changes will become effective on the 1st of July 2021. The “Specified Persons,” defined in the new provisions, are subject to a higher TDS/TCS rate due to these sections.
In light of the information presented above, the Department of Income Tax has made available a new functionality called “Compliance Check for Section 206AB & 206CCA,” which makes it easier for tax deductors and collectors to determine whether or not a given individual falls under the definition of “Specified Person” by sections 206ab of income tax act and 206CCA. .
CBDT Notification
- The CBDT Circular No. 11 of 2021, published on the 21st of June 2021, explains the functionality’s underlying rationale.
- The burden on the tax collector and deductors has been lightened even further by the Notification, which ensures that the tax collector and deductors only need to check the PAN capabilities at the beginning of the financial year. During that financial year, the tax collector and deductors are exempt from having to check the PAN of the non-specified person again.
- The government has reaffirmed its dedication to reducing the burden of regulatory compliance placed on taxpayers by introducing this additional functionality.
The Income Tax Act of 1961:
The Income Tax Act of 1961 was updated by the Finance Act of 2021 to include two new sections: 206AB and 206CCA. These changes will become effective on the 1st of July 2021. In the case of individuals who do not file tax returns, some sections require tax deductions or tax collection at a greater rate (specified persons). The higher rate is equal to either twice the prescribed rate or 5%; whichever is higher will be applied.
To put these two provisions, sections 206AB and 206CCA, into effect, the tax collector or deductor was obliged to conduct the necessary research to convince himself whether the deducted or collected is a defined person. This functionality is made available to users through the Reporting Portal provided by the Department of Income Tax return
Verification of Compliance with Sections 206AB and 206CCA:
The Direct Taxes have released a new functionality known – as the Central Board to reduce the burden of regulatory compliance. This functionality is already operational through the reporting site maintained by the Department of Income Tax.
- If you do a PAN Search, the response will be displayed on the screen and can be saved in PDF format.
- The response to a Bulk Search query would be provided in the form of a downloaded file that may be saved for future reference.
Having Access To The Features Available On The Reporting Portal:
- To proceed, the Principal Officer needs to log into the portal, fill out the required information about themselves in the appropriate fields, and then click the Login button.
Note: If the Principal Officer’s PAN is already registered for several Forms and ITDREINs.
- The homepage of the Reporting Portal is displayed once a successful login has been completed.
Verification of Compliance with Sections 206AB and 206CCA
When the Compliance Check for Section 206AB & 206CCA button is clicked, the page displays the functionality of the compliance check displays. Tax deductors or collectors can use the functionality to determine if a person is a “Specified Person” according to the definitions provided in the Sections.
The same thing can be accomplished in two different ways:
- PAN Search: Checking for a single record.
- Bulk Search: This search can be used to validate PANs in Bulk.
Search Using Pan (Single Pan Search)
- After successfully entering a valid PAN and captcha code, the following output result will be presented. The output result will not be displayed if an invalid PAN is an input.
- Financial Year: Current Financial Year
- PAN: Exactly as it was specified in the input.
- Name of the Person Hidden behind a Mask (as per PAN).
- Date of PAN allotment, also known as the date of PAN allotment.
- PAN -Aadhaar Link Status: The current status of linking PAN numbers to Aadhaar numbers for individuals who hold PAN numbers as of this date. Specified Person by Sections 206AB and 206CCA:
- Additionally, the date that the “Specified Person” status was determined by sections 206AB and 206CCA will be provided as part of the output.
Bulk Search
- Click the tab labeled “Bulk Search,” then click the option labeled “Download CSV Template” to save the CSV template to your computer.
- Complete the CSV with PANs that must have the “Specified Person” status applied to them.
- Note that the Personal Access Numbers (PANs) that are provided must be genuine PANs, and the total number of PANs must not exceed 10,000.
- You can upload the CSV file by clicking on the ” Upload CSV button.” The status of the uploaded file will change to “Uploaded” once it has been successfully transferred.
- When the status becomes available, you can download the output result CSV by clicking on the Link that says Available.
- The status will change to download after the file has been downloaded, and it will change to Link Expired once the file has been available for download for twenty-four hours. Download links expire when they have been in use for twenty-four hours.
Conclusion
Section 206AB & 206CCA – states the full adherence to compliance check functionality. To know more about it, you would need guidance from an expert such as Vakilsearch. The team here is very able and experienced to provide the best services of online accounting services , due to their extreme knowledge and historical approach.
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