Step by Step Guide for compliance check for ITR non filer status for higher TDS rate

Step by Step Guide / Procedure for compliance check for ITRs non filer status for higher TDS rate u/s 206AB / 206CCA 

Step by Step Guide / Procedure for Compliance Check for ITRS Non filers for Section 206AB & 206CCA

The Finance Act 2021 has inserted Section 206AB and 206CCA in the Income-tax Act,1961 (effective from 1st July 2021). These sections impose a higher TDS/TCS rate on non-filers of Income Tax Return (ITR) called the “Specified Persons” in the new sections.

In view of the above, Income Tax Department has facilitated a new functionality “Compliance Check for Section 206AB & 206CCA” to facilitate tax deductors/collectors to verify if a person is a “Specified Person” as per section 206AB & 206CCA.

This functionality is available to the Principal Officers/Person responsible for deduction/collection of tax of the registered TAN.

The procedure for availing functionality for compliance check u/s 206AB involves following four steps: 

1. Register of TAN at e-filing portal 
2. Registration of Tax Deductors/Collectors on Reporting Portal
3. Login to Reporting Portal to check compliance
4. Accessing the Compliance Check Functionality

1. Register of TAN at e-filing portal by TAN

1.1 One can start with e-filing portal following steps 1.2 to 1.6 or go directly login to TRACES website as per step 1.7

1.2 On the new e-filing portal and lick on Register on top right

1.3 Thereafter, from the next window choose the option Register as “Others”

1.4 From the drop down select option “Tax Deductor and Collector” , fill the TAN and click on “Validate”

compliance check non filers

1.5 On successful validation of TAN, click “Continue”

1.6 On the next window click on “Go to Traces”

compliance check non filers

1.7 On Traces window, login into the Traces

1.7 After login to Traces, on the left side menus, click on “Register at E-filing site“

compliance check non filers

1.8 On the next window, the information shall be displayed for :

TAN of the organisation
PAN of the organisation, and
PAN of the Authorised Person

1.9 If the information displayed is correct click on “redirect” button to navigate to E-Filing Website to register your TAN. Keep press the “control key” to disable popup blocker if enabled.

compliance check non filers

1.10 In the next window, select “Yes” for question “Is PAN of Organization available?” and fill the PAN and name of the organisation exactly as per PAN and click Continue

compliance check non filers

1.11 On the next window fill the details of the person responsible for making payment/collecting Tax and click continue

1.12 In the next window fill the contact and address details of the person responsible for making payment/collecting tax

1.13 In the next window fill the OTP received in the mobile number and email given in contact details and click continue.

compliance check non filers

1.14 After OTP validation, create a password for TAN login

1.15 After sucessfully registering, you will be required to activate the TAN

1.16 Login to efiling portal through PAN and activate the TAN under menu “Pending Action” click on “worklist”

1.17 Under the tab “for your action” the details of TAN registration pending for approval shall be displayed, Click on “Approve”

compliance check non filers09-tan-approve

1.10 After successfully activation of the TAN, you can login to e-filing portal through TAN and password.

2. Registration of Tax Deductors/Collectors on Reporting Portal

2.1 Log in to e-filing using e-filing login using TAN as User ID.

2.2 Under menu “Pending Action” select “Reporting Portal” and click on “proceed”

compliance check non filers

2.3 Select option “New Registration” and click “Continue”

compliance check non filers

2.4 In next window, against Form Type, select “Compliance Check (Tax Deductor & Collector). Entity Category shall be selected automatically. Click Next to navigate to entity details page

compliance check non filers

2.5 Enter relevant entity details on entity details page and click on “Add Principal Officer” button to add Principal Officer.

compliance check non filers

2.6 enter Principal Officer details. Principal Officer is the person designated by the entity to login and use this functionality.

compliance check non filers

Upon clicking “Submit” button, success message will display.

compliance check non filers

2.7 ITDREIN will be generated upon successful registration. Once the registration request is approved by Income tax Department, email notification will be shared with the Principal Officer along with ITDREIN details and login credentials.

2.8 For activation of Principal Officer’s account, below mentioned steps to be followed:

    • Principal Officer receives an e-mail along with temporary credentials.
    • Principal Officer will log into Reporting Portal using temporary credentials.
    • Principal Officer will be prompted to change the temporary password.
    • Principal Officer’s account shall be deemed active once password is changed successfully

3. Login on Reporting Portal

3.1 The Principal Officers of the registered TAN shall be able to use the functionality after login into the Reporting Portal using his/her credentials

compliance check non filers3.2 On the next screen, against the Form Type, select “Compliance Check for Tax Deductor & Collector” and select ITDREIN.

compliance check non filers

If Principal Officer’s PAN is registered for multiple Forms & ITDREIN, he/she needs to select Form type as Compliance Check (Tax Deductor & Collector) and associated ITDREINs from the drop-down

3.3 Check authorised-person

compliance check non filersselect-

4. Accessing the Compliance Check Functionality

After successfully logging in, the home page of Reporting Portal appears, click on Compliance Check for Section 206AB & 206CCA link provided as shortcut on left panel.

compliance check non filers

4.1 Compliance Check can be done for Single PAN or Bulk search

compliance check non filers

4.2 For Single Pan Search, fill the PAN for which compliance check is to be done.

The response options are Yes (PAN is a specified person as per section 206AB/206CCA as on date) or No (PAN is not a specified person as per section 206AB/206CCA as on date). Output will also provide the date on which the “Specified Person” status as per section 206AB and 206CCA is determined.  

compliance check non filers

4.3 Bulk PAN Search, a CSV Template to enter PAN details can be downloaded by clicking on “Download CSV template” button under “Bulk Search” tab

compliance check non filers

4.4 After downloading CSV template for bulk search, all PANs are to be filled in column A. Up to maximum limit of 10000 PAN.

compliance check non filers

4.5 Filled CSV can be uploaded by clicking on Upload CSV button.  Financial Year will be automatically selected to current FY and can-not be changed. 

compliance check non filers

4.6 After processing, CSV file containing “Specified Person” status of the entered PANs will be available for download and “Status” will change to Available.

compliance check non filers

4.7 Output CSV file will have FY, PAN, Name of the PAN holder (masked), PAN Allotment Date, PAN-Aadhaar link status and Specified Person u/s 206AB & 206CCA status.

compliance check non filers

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