Compliance Check Functionality for Section 206AB & 206CCA of Income-tax Act 1961

New Delhi, 09th June, 2022

1. Section 206AB and 206CCA of the Income-tax Ad,1961 (effective from 1st July 2021 and amended via Finance Act, 2022), imposed higher TDS/TCS rate on the “Specified Persons defined as under,
2. 1. • For the purposes of this section “specified person” means a person who has not furnished the return of income for the assessment year relevant to the previous year immediately preceding the financial year in which tax is required to be deducted, for which the time limit for furnishing the 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 f;tty thousand or more in the said previous year :
   3. Provided that the specified person shall not include a non-resident who does not have a permanent establishment in India.
   5. 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.
   7. 2. To facilitate Tax Deductors and Collectors in identification of Specified Persons as defined in sections 206AB and 206CCA, the Central Board of Direct Taxes (“CBDT”), in exercise of powers conferred under section 138(1)(aXi) of Income-tax Act, 1961 (Act), has issued Order via F.No. 225/67/2021/ITAII dated 21.06.2021 , directing that Director General of Income-tax (Systems), New Delhi shall be the specified income-tax authority for furnishing information to the -Tax Deductor Tax Collector”, having registered in the reporting portal of the Project Insight through valid TAN, to identify the ‘Specified Persons’ for the purposes of section 206AB and 206CCA of the Act through the functionality “Compliance Check for Section 206AB & 206CCA”.

3. Income Tax Department has released a 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 (https:/lreport.insight.gov.in) of Income-tax Department. Kindly refer to CBDT Circular No. 11 of 2021 dated 21.06.2021 and CSOT Circular No. 10 of 2022 dated 17.05.2022 regarding use of functionality under section 206AB and 206CCA of the Income-tax Act, 1961 .

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Notification : https://www.dropbox.com/s/03arndqolta47w7/Compliance%20Check%20Functionality%20for%20Section%20206A8%20%26%20206CCA%20of%20Income-tax%20Act%201961.pdf?dl=0