CBDT issued an order u/s 138(1)(a)(i) of the Income Tax Act, 1961 (‘Act’) on 21.06.2021 for the purposes of the launch of Compliance Check Functionality for Section 206AB and section 206CCA related to deduction/collection of tax (TDS/TCS) at a higher rate for non-filers of ITR.
It should be noted that CBDT issued a Circular No. 11/2021 dated 21.06.2021 regarding use of functionality under Section 206AB and Section 206CCA of the Act.
Section 138 of the Act empowers the CBDT or any other income-tax authority specified by it to disclose information regarding the assessees by a general or special order issued in this behalf.
This section deals with the mechanism for disclosure of information in respect of assessees under the Act. Sub-section (1) of section 138 provides that CBDT or Income-tax authorities specified by it may furnish certain information, as obtained in the performance of their functions, to authorities either dealing with the laws related to any tax, duty, cess or foreign exchange or to authorities (notified by Central Government) who are performing their functions under any other law, subject to certain conditions. It is further provided that Pr. CCIT /CCIT /Pr.CIT or CIT may, if satisfied in the public interest, can decide to furnish information pertaining to any assessee, which has been obtained in the performance of functions by any Income-tax authorities.
However, sub-section (2) of section 138, which starts with a non-obstante clause, stipulates that Central Government, on consideration of certain factors, can notify that no information or document would be furnished in respect of any matter relating to any class of assessees or except to such authorities as specified.
Read the full text of the Order dated 21.06.2021 on Compliance Check Functionality for Section 206AB & 206CCA
F.No.225/67/2021/ITA.II
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
New Delhi, the 21st June, 2020
Order under section 138(1)(a)(i) of the Income Tax Act, 1961
The Central Board of Direct Taxes (‘CBDT’), in exercise of powers conferred under section 138(1)(a)(i) of Income-tax Act, 1961 (‘Act’), hereby directs that Director General of Income-tax (Systems), New Delhi shall be the specified income-tax authority for furnishing information to the ‘Tax Deductor/Tax Collector’, having registered in the reporting portal of the Project Insight through valid TAN, to identify the 'Specified Persons' for the purposes of section 206AB and 206CCA of the Act through the functionality “Compliance Check for Section 206AB & 206CCA”.
2. The information to be furnished shall be:
a) Name: Name as per PAN Record (Masked)
b) PAN Allotment date: xx-xx-xxxx
c) PAN Aadhaar Link Status: Status of linking of PAN and Aadhaar for individual PAN Holders as below:
i. Linked: PAN and Aadhaar are linked
ii. Not Linked: PAN & Aadhaar are not linked.
iii. Exempt: PAN is exempted from PAN-Aadhaar linking requirements as per CBDT's Notification No. 37/2017 dated 11th May 2017.
iv. Not - Applicable: PAN belongs to non-individual person.
d) Specified person u/s 206AB & 206CCA: (Yes/No)
3. To facilitate the process of furnishing information through the functionality, the Director General of Income-tax (Systems) would notify the procedure and format regarding the functionality “Compliance Check for Section 206AB & 206CCA” after taking approval from the CBDT.
4. A copy of Notification shall be forwarded to this division for record purposes.
(Rajarajeswari R.)
DCIT(OSD), (ITA-II), CBDT
Download Copy of the Order dated 21.06.2021 on Compliance Check Functionality for Section 206AB & 206CCA in pdf format
Update:
Read comprehensive analysis of section 206AB in this article.
Other articles on Section 206AB:
CBDT Circular on Implementation of Section 206AB and Section 206CCA for non-filers
CBDT Issues Order to Launch Compliance Check Functionality for Section 206AB & 206CCA
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