The Finance Act 2021 introduced Sections 206AB and 206CCA in the Income Tax Act 1961, effective July 1, 2021. These sections impose higher TDS/TCS rates on “Specified Persons” who have not filed income tax returns for the past 2 years and have aggregate TDS/TCS over Rs 50,000 in each of those years.
To help taxpayers verify if a person is a “Specified Person”, the Income Tax Department has enabled a new Compliance Check functionality on its Reporting Portal.
Who Can Access the Compliance Check?
i) The functionality is available to Principal Officers of registered TANs on the Reporting Portal.
ii) To access it, tax deductors/collectors need to first register their TAN on the Portal.
How to Register on the Reporting Portal
i) Go to https://report.insight.gov.in and click on Register.
ii) Log in with your e-filing credentials and select Reporting Portal under Pending Actions.
iii) Fill in entity details and add the Principal Officer.
iv) Submit registration request and await approval from the IT Department.
Checking Compliance Status
Once registered, Principal Officers can log in and access Compliance Check under the 206AB/206CCA section.
There are two modes to check compliance:
i) PAN Search: Verify single PAN compliance status
ii) Bulk Search: Upload a CSV file to check status for multiple PANs
The output shows the PAN details, PAN-Aadhaar linking status, and whether the person is a Specified Person under 206AB/206CCA.
Key Benefits
i) Helps deductors determine if a higher TDS/TCS rate applies as per 206AB/206CCA
ii) Provides an easy way to check compliance status through PAN Search or Bulk Upload
iii) Output shows real-time data on Specified Person status
Registering on the Reporting Portal and using this Compliance Check functionality can simplify the process of identifying Specified Persons liable for higher TDS/TCS. This improves efficiency and ensures accurate tax deduction/collection as per the latest IT Act provisions. Overall, it helps deductors and collectors stay compliant with Sections 206AB and 206CCA.
Compliance Check Functionality User Guide for Section 206AB & 206CCA Income Tax Reporting Portal (November 2023)