Circular regarding use of functionality under Section 206AB and 206CCA of the Income-tax Act, 1961

Finance Act, 2021 inserted two new sections 206AB and 206CCA in the Income-tax Act 1961 (hereinafter referred to as "the Act") which takes effect from 1st day of July, 2021.

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 format.

For Bulk Search, response would be in the form of downloadable file which can be kept for record.

The list would be drawn afresh at the start of each financial year and the process (as mentioned in circular) would have to be repeated.


Feel free to contact in case of any query or consultation.