CBDT has issued a notification for the clarification regarding S. 206 AB and 206 CCA of Income Tax

The Central Board of Direct Taxes (CBDT) on June 21, 2021 has issued a circular for the clarification regarding the use of functionality under S. 206 AB and 206 CCA of the Income Tax Act, 1961.

It can be seen that the tax deductor or the tax collector is required to do a due diligence of satisfying himself if the deductee or the collectee is a specified person. This can lead to extra compliance burden on such tax deductor or tax collector. To ease this compliance burden the Central Board of Direct Taxes is issuing a new functionality "Compliance Check for Sections 206AB & 206CCA.”

This functionality is made available through reporting portal of the Income-tax Department. The tax deductor or the collector can feed the single PAN (PAN search) or multiple PANs (bulk search) of the deductee or coIIectee and can get a response from the functionality if such deductee or collectee is a specified person. For PAN Search, response will be visible on the screen which can be downloaded in the PDF fonnant. For Bulk Search, response would be in the Conn of downloadable file which can be kept for record.

[Circular No. 11 of 2021]

Circular No. 11 of 2021.pdf

Download PDF • 885KB