Circular 11/2021- Compliance check for section 206AB and 206CCA

Finance Act, 2021 inserted two new sections 206AB and 206CCA in the Income-tax Act 1961 which takes effect from the 1st day of July 2021. These sections mandate tax deduction (section 206AB) or tax collection (section 206CCA) at a higher rate in the case of certain non-filers with respect to tax deductions and tax collections.

In view of these section, the department has facilitated a new functionality ‘compliance check for section 206AB and section 206CCA’. It facilitate tax deductor/collector to verify if a person is a ‘specified person’ as per section 206AB and 206CCA of the Income Tax Act, 1961.

Compliance check for section 206AB and section 206CCA

The CBDT said that since the TDS deductor or the TCS collector would be required to do due diligence on whether the deductee or collectee is a ‘specified person’, this could lead to an extra compliance burden on them.

The new functionality, “compliance check for section 206AB and section 206CCA” would ease this compliance burden, the CBDT said.

Through the functionality, the TDS deductor or TCS collector can feed PAN of the deductee or collectee on the functionality and get to know whether the deductee or collectee is a specified person.

This functionality is made available through reporting portal of the Income Tax Department (

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Compiled by- CA Chirag Agarwal (Practicing Chartered Accountants)

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