Income Tax E-Filing Portal enabled Functionality of Compliance Check for Section 206AB & 206CCA for FY 2022-23

Income Tax E-Filing Portal enabled Functionality of Compliance Check for Section 206AB & 206CCA for FY 2022-23 The E-filing Portal of Income Tax Department enabled Functionality of Compliance Check for Section 206AB & 206CCA for FY 2022-23. The Finance Act of 2021 added two new sections 206AB and 206CCA to the Income-tax Act of 1961, which take effect on July 1, 2021. These provisions apply a higher TDS/TCS rate to 'Specified Persons,' as defined in the new sections. In light of the foregoing, the Income Tax Department has implemented a new functionality called 'Compliance Check for Section 206AB & 206CCA' to assist tax deductors/collectors in determining whether a person is a 'Specified Person' under Section 206AB & 206CCA. This functionality is made available through the Income-tax Department's Reporting Portal. CBDT vs. The following article summarises Notification No. 1 of 2021, dated 22.06.2021, which notifies the procedure for using the Compliance Check feature for Sections 206AB and 206CCA. Watch this video on How to use ITR Compliance Check Tool for Section 206AB & 206CCA  

CBDT Notification Synopsis

The CBDT has introduced a new functionality "Compliance Check for Sections 206AB & 206CCA" to lessen the compliance load on tax deductors and tax collectors in complying with the provisions of sections 206AB and 206CCA. The functionality's reasoning has been outlined in CBDT Circular No. 11 of 2021, dated June 21, 2021. The Notification has further reduced the burden on tax deductors/collectors by requiring them to check the PAN in the functionality at the start of the financial year without the requirement to check the PAN of the non-specified person again within that financial year. With this new feature, the government has reinforced its commitment to reducing taxpayers' compliance burden.