Central Board of Direct Taxes has issued a Circular which announces introduction of a new compliance check functionality for verifying whether a deductee is a “Specified Person” (SP) for the applicability of punitive higher rates prescribed under Section (S.) 206AB/S.206CCA of the Income Tax Laws. Finance Act 2021 introduced S.206AB/S.206CCA with effect from 1 July 2021 to provide for higher tax deducted at source )/tax collected at source rates where the deductee does not file returns of income for two consecutive years and cumulative TDS/TCS of INR 50,000 or more in both years. To relieve compliance burden for taxpayers, the CBDT has announced introduction of a new compliance check functionality on the reporting portal of the Income tax Department. Please refer to the circular here .
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