Section 206AB and 206CCA inserted in the Income-tax Act,1961 (effective from 1st July 2021), imposed higher TDS/TCS rate on the “Specified Persons’.To facilitate Tax Deductors and Collectors in identification of Specified Persons as defined in sections 206AB and 206CCA, Income Tax Department has released 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 (https://report.insight.gov.in) of Income-tax Department. Kindly refer to CBDT Circular No. 11 of 2021 dated 21.06.2021 regarding use of functionality under section 206AB and 206CCA of the Income-tax Act, 1961
a) Registration: Tax Deductors and Collectors can register on the Reporting Portal by logging in to e-filing portal (http://www.incometax.gov.in/) using e-filing login credential of TAN and clicking on the link “Reporting Portal” which is available under “Pending Actions” Tab of the e-filing Portal. After being redirected to the Reporting Portal, the tax deductor/collector needs to select Compliance Check (Tax Deductor & Collector) under Form Type. The details of the principal officer also need to be provided by clicking on “Add Principal Officer” button. The principal officer is the authorized person of the tax deductor/collector to use the Compliance Check functionality on reporting portal. After submission of registration request, email notification will be shared with the Principal Officer along with ITDREIN details and login credentials
b) Accessing the Compliance Check functionality: Principal Officers of the entities (Tax Deductors & Collectors) which are registered with the Reporting Portal through TAN shall be able to use the functionality after login into the Reporting Portal using their credentials. After successfully logging in, link to the functionality “Compliance Check for Section 206AB & 206CCA” will appear on the home page of the Reporting Portal.
c) Using “PAN Search” mode: Under the “Compliance Check for Section 206AB & 206CCA” page, “PAN Search” tab may be selected to access the functionality in PAN Search mode. In this mode single valid PAN along with captcha can be entered at a time and output will be available with following fields,
Financial Year: Current Financial Year
PAN: As provided in the input.
Name: Masked name of the Person (as per PAN).
PAN Allotment date: Date of allotment of PAN.
PAN-Aadhaar Link Status: Status of PAN-Aadhaar linking for individual PAN holders as on date. The response options are Linked (PAN and Aadhaar are linked), Not Linked (PAN & Aadhaar are not linked), Exempt (PAN is exempted from PAN-Aadhaar linking requirements as per Department of Revenue Notification No. 37/2017 dated 11th May 2017) or Not-Applicable (PAN belongs to non-individual person).
Specified Person u/s 206AB & 206CCA: The response options are Yes (PAN is a specified person as per section 206AB/206CCA as on date) or No (PAN is not a specified person as per section 206AB/206CCA as on date).
Output will also provide the date on which the “Specified Person” status as per section 206AB and 206CCA is determined.
d) Using “Bulk Search” mode: Under the “Compliance Check for Section 206AB & 206CCA” functionality page, “Bulk Search” tab may be access to access the functionality in Bulk Search mode. This mode involves following steps:
i. Preparing request (Input) file containing PANs: Under the “Bulk Search” page, CSV Template to enter PANs details may be downloaded by clicking on “Download CSV template” button. PANs for which “Specified Person” status is required may be entered in the downloaded CSV template. The current limit in the number of PANs in a single file is 10,000.
ii. Uploading the input CSV file: Input CSV file may be uploaded by clicking on Upload CSV button. Uploaded file will start reflecting with Uploaded status.
iii. Downloading the output CSV file: After processing, CSV file containing “Specified Person” status as per section 20SAB & 206CCA of the entered PANs will be available for download and “Status’ will change to Available. Output CSV file will contain PAN, Masked Name, Specified Person Status as per section 20SAS & 206CCA, PAN-Aadhar Link status and other details as mentioned in paragraph c) above. After downloading of the file, the status will change to Downloaded. The download link will expire and status will change to Expired after specified time (presently 24 hours of availability of the file)
For any further assistance, Tax Deductors & Collectors can refer to Quick Reference Guide on Compliance Check for Section 206AS & 206CCA and Frequently Asked Questions (FAQ) available under “Resources’ section of Reporting Portal. They can also navigate to the “Help” section of Reporting Portal for submitting query or to get a call back from Customer Care Team of Income-tax Department. Customer Care Team of Income-tax Department can also be reached by calling on its Toll Free number 1800 1034215 for any assistance.
Accordingly there is no mandatory requirement to give any declaration to the Tax Deductors & Collectors and Tax Deductors & Collectors cannot and should not deduct/collect tax at a higher rate for failure on the part of Deductee to give declaration to Tax Deductors & Collectors
The above facility has been operational already and Tax Deductors & Collectors can verify if a person is a “Specified Person” as per section 206AB & 206CCA through the portal https://report.insight.gov.in