Compliance Check

How to do compliance check for sections 206AB & 206CCA?

CBDT (Central Board of Direct Taxes) has issued a functionality to verify whether the vendors have filed a tax return for compliance of Section 206AB and Section 206CCA. The decision has been welcomed by the stakeholders.

Section 206AB & section 206CCA inserted in the Income-tax Act, 1961 via Finance Act, 2021 will be effective from the 1st day of July, 2021. These sections mandate tax deduction or tax collection at a higher rate in the case of specified persons. The higher rate is twice the prescribed rate or 5%, whichever is higher.

Read: CBDT issues functionality for Compliance Check for Sections 206AB & 206CCA

To ease this compliance burden the Central Board of Direct Taxes has issued a new functionality “Compliance Check for Sections 206AB & 206CCA”. This functionality is already functioning through the reporting portal of the Income-tax Department (https://report.insight.gov.in). Through the compliance check facility, the tax deductors/collectors can verify if a person is a “Specified Person” as defined in Section 206AB & 206CCA.

How to do a compliance check for sections 206AB & 206CCA through the new functionality?

To access the “Compliance Check for Section 206AB & 206CCA” functionality, tax deductors/collectors need to register through TAN on the reporting portal of the Income-tax Department. After successful registration, the user can verify if any person is a “Specified Person” as defined in Section 206AB & 206CCA.

TAN registration on the reporting portal to access the compliance check facility

Below steps should be followed for registration of TAN on the reporting portal to access the Compliance check facility:

  • Log in to the new Income Tax portal of the Income-tax Department through http://www.incometax.gov.in/
  • Click on the “Pending Actions” and select “Reporting Portal”
  • You will be redirected to the reporting portal, select the New Registration option, and click Continue.
  • Now, select the Form type as Compliance Check (Tax Deductor & Collector). The Entity Category will be displayed based on the category in which TAN is registered at e-filing. Click Continue to navigate to the entity details page.
  • Enter the details asked on the entity details page and click on the “Add Principal Officer” button to add Principal Officer. Enter details of the Principal Officer.
  • Click on the preview button to check the details entered and if found ok then submit the request by clicking on the submit button.
  • An acknowledgment receipt of the registration request will be generated, which will be sent to the Principal Officer as well.
  • Once the request is approved by the Income-tax Department, an email notification will be shared with the Principal Officer along with ITDREIN details and login credentials.

Compliance check for Sections 206AB & 206CCA

Once the login credentials are generated, the principal officer can log in on the reporting portal at https://report.insight.gov.in. After logging in, the home page of reporting portal appears, click on the “Compliance Check for Section 206AB & 206CCA” link.

On the compliance check functionality page, the tax deductor or the collector can feed the single PAN (PAN search) or multiple PANs (bulk search) of the deductee or collectee and can get a response from the functionality if such deductee or collectee is a specified person.

Compliance check to verify the single PAN

If the user wants to verify the single PAN then the user needs to select the PAN Search tab under “Compliance Check for Section 206AB & 206CCA” functionality. The user needs to provide a valid PAN to get the output. User will get the below-mentioned details in the output:

  • Current Financial Year
  • PAN as submitted
  • Name as per PAN and the date of PAN allotment
  • PAN-Aadhaar linking status for individual PAN holders
  • Specified Person u/s 206AB & 206CCA: If the result is “Yes” then the PAN is the Specified person and if “No” then the PAN is not a specified person.

Compliance check to verify multiple PANs

If the user wants to do a compliance check for multiple PANs the user needs to select the “Bulk Search” tab. Download the CSV Template by clicking on the “Download CSV Template” button. CSV template should contain the PANs for which “Specified Person” status is required. (Count of PANs should exceed 10,000).

The user has to upload the CSV file by clicking on “Upload CSV”. Once the CSV file is uploaded, a link will be generated to download the output result CSV file.

The Output result CSV file will contain the same result as the result came while checking for a single PAN i.e. Current financial year, PAN-Aadhaar linking status, and the response, whether the PAN is a specified person or not. The output will also provide the date on which the “Specified Person” status as per section 206AB and 206CCA is determined.


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