The Central Board of Direct Taxes (CBDT) has issued a circular relating to Compliance Check Functionality for Section 206AB & 206CCA of Income Tax Act, 1961.
Section 206AB and 206CCA of the Income-tax Act,1961, imposed higher TDS/TCS rate on the “Specified Persons” with effect from 1st July 2021 and amended via Finance Act, 2022.
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 fifty thousand or more in the said previous year: 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.”
Last y, the Board has issued an order stating 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”.
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.//report,insight.govin) of Income-tax Department.
The Circular also mentions about the Bulk Search mode under the “Compliance Check for Section 200AB & 206CCA” functionality page,
“”Bulk Search” tab may be selected to access the functionality in Bulk Search mode. This mode involves following steps: i Preparing request (input) file containing PANs: Linder 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 After processing, CSV file containing “Specified Person”. status as per section 206AB & 206CCA of the entered PANs will be available for download and ‘Status” will change to Available,” the circular said.
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