Quick Summary
The Central Board of Direct Taxes has issued a circular regarding theuse of functionality under Section 206AB and 206CCA of the Income-tax Act, 1961. These sections mandate tax deduction under Section 206ABor tax collection under Section 206CCA at a higher rate in the case of certain non-filers of return and will be effective from 1st July 2021 onwards. Read the official notification below: Circular No. 11 of 2021 F. No. 3701331712021-TPL Government of India Ministry of Finance Department
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FAQ :
These sections mandate higher tax deduction or collection rates for certain individuals who have not filed their income tax returns for the relevant assessment years.
A 'specified person' is someone who has not filed income tax returns for the two assessment years preceding the current financial year, and whose aggregate TDS and TCS in each of those years was ₹50,000 or more.
The CBDT has introduced an online 'Compliance Check for Sections 206AB & 206CCA' functionality on the Income-tax Department's reporting portal. This allows users to check if a PAN belongs to a 'specified person'.
Users can input single PANs (PAN Search) or multiple PANs (Bulk Search) into the functionality to determine if the individuals are 'specified persons'. The results can be downloaded for records.
No, new names will not be added to the list during the financial year to reduce the compliance burden. Names may only be removed if the individual files a valid return or meets other specified conditions.
No, non-residents who do not have a permanent establishment in India are excluded from the definition of 'specified persons' under these sections.
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