The income tax department on June 21 said it has developed a new utility to help TDS deductors and TCS collectors identify the 'specified persons' on whom higher rate of taxes would be levied from July 1.
These sections mandate tax deduction or tax collection at a higher rate in case of certain non-filers (specified persons). Higher rate is twice the prescribed rate or 5 per cent, whichever is higher.
As per the ministry to implement these two provisions, tax deductor/collector was required to do a due diligence of satisfying himself if the deductee/collectee is a specified person. This would have resulted in extra compliance burden on such tax deductor/collector.
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.
Registration of Tax Deductors/Collectors on Reporting Portal
- To access the “Compliance Check for Section 206AB & 206CCA” functionality, tax deductors/collectors need to register through TAN on the Reporting Portal of Income-tax Department.
Following steps may be followed for registration of TAN on reporting portal:
-Go to Reporting Portal at URL https://report.insight.gov.in.
-On the left sidebar of the Reporting Portal homepage, click on the Register button.
- User is redirected to the e-filing login page or directly navigated to e-filing portal through http://www.incometax.gov.in/
- Log in to e-filing using the e-filing login credential of TAN.
- Under “Pending Actions”, select “Reporting Portal”.
- After being redirected to the Reporting portal, select the New Registration option and click Continue.
- On the next screen, 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 relevant entity details on the entity details page and click on “Add Principal Officer” button to add the Principal Officer.
-Enter Principal Officer details on the Principal Officer Details page.
-If more users such as Nodal Officer, Alternate Nodal Officer and other users are to be registered at this instance, adding the details of such users can be continued, otherwise the same can be done after registration also.
-Click on the Preview button to view the entered entity and principal officer details.
-Click on the Submit button to submit the registration request.
-Acknowledgement receipt of registration request is provided through portal and the same will also be shared through an email notification to the Principal Officer.
-Once the registration request is approved by the Income tax Department, email notification will be shared with the Principal Officer along with ITDREIN details and login credentials.
Accessing the functionality on Reporting Portal – by Principal Officer
-Go to Reporting Portal at URL https://report.insight.gov.in.
-On the left sidebar of the Reporting Portal homepage, click the Login button.
- Enter the required details (of Principal Officer) in the respective fields (PAN and Password as received in the email or updated password) and click Login to continue.
- If the Principal Officer’s PAN is registered for multiple Forms & ITDREIN, he/she needs to select Form type as Compliance Check (Tax Deductor & Collector) and associated ITDREINs from the drop-down.
- After successfully logging in, the home page of Reporting Portal appears.
- Click on Compliance Check for Section 206AB & 206CCA link provided as shortcut on left panel.
Compliance Check for Section 206AB & 206CCA
- Upon clicking Compliance Check for Section 206AB & 206CCA at home page, the compliance check functionality page appears. Through the functionality, tax deductors or collectors can verify if any person (PAN) is a “Specified Person” as defined in Section 206AB & 206CCA.
The same can be done in two modes:
PAN Search: To verify for single PAN
Bulk Search: To verify for PANs in bulk
PAN Search (Single PAN Search)
Step 1: Select PAN Search tab under Compliance Check for Section 206AB & 206CCA functionality.
Step 2: Enter valid PAN & captcha code and click Search.
- Following Output result will be displayed upon entering a valid PAN & captcha code.Output result will not be shown if an invalid PAN is entered.
Bulk Search
- Select “Bulk Search” tab.
- Download the CSV Template by clicking on “Download CSV template” button.
- Fill the CSV with PANs for which “Specified Person” status is required. (Provided PANs should be valid PANs and count of PANs should not be more than 10,000).
- Upload the CSV by clicking on “Upload CSV” button.
- Uploaded file will start reflecting with Uploaded status. The status will be as follows:
Uploaded – The CSV has been uploaded and pending for processing.
Available – Uploaded CSV has been processed and results are ready for download.
Downloaded – The user has downloaded the output results CSV.
Link Expired - Download link has been expired.
- Download the output result CSV once status is available by clicking on Available link.
- After downloading the file, the status will change to Downloaded and after 24 hours of availability of the file, download link will expire and status will change to Link Expired.