TDS/TCS compliance for Section 206AB and 206CCA

Section 206AB and 206CCA inserted in the Income-tax Act,1961 (effective from 1st July 2021), imposed higher TDS/TCS rate on the "Specified Persons' defined as under,

For the purposes of this section ' specified person" means a person who has not filed the returns of income for both of the two assessment years relevant to the two previous years immediately prior to the previous year in which tax is required to be collected, for which the time limit of filing return of income under sub-section (1) of section 139 has expired; and the aggregate of tax deducted at source and tax collected at source in his case is rupees fifty thousand or more in each of these two previous years. 

Provided that the specified person shall not include a non-resident who does not have a permanent establishment in India.

To facilitate Tax Deductors and Collectors in identification of Specified Persons as defined in sections 206AB and 206CCA, the Central Board of Direct Taxes ("CBDT") has directed 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. This information is available through the functionality "Compliance Check for Section 206AB& 206CCA". 

This functionality "Compliance Check for Section 206AB& 206CCA" is made available through (https://report.insight.gov.in) of Income-tax Department.

Source: https://www.incometaxindia.gov.in/communications/notification/notification01_2021-compliance-check-functionality.pdf

Guidelines for filling Income Tax Returns

The Central Board of Direct Taxes (CBDT) notified the instructions are guidelines to help the taxpayers for filling the particulars in ITR-1 SAHAJ, ITR-2, ITR-3 ITR-4, ITR-5, ITR-6, and ITR-7,  for the Assessment Year 2021‐22 relating to the Financial Year 2020‐21.

The CBDT has not made significant changes to ITR forms in comparison to last year to help the taxpayers in view of the ongoing crisis due to the COVID pandemic. There is no change in the manner of filing of ITR Forms as compared to last year either, the tax body further mentioned.

1. Form ITR-1 Sahaj is a simple form mostly filed by a large number of small and medium taxpayers, which can be filed by an individual having income up to Rs 50 lakh and who receives income from salary, one house property, or other sources, like interest, etc.
2. Similarly, ITR-4 Sugam can be filed by individuals, Hindu Undivided Families (HUFs), and firms (other than limited liability partnerships (LLPs)) with total income up to Rs 50 lakh and income from business and profession computed under the presumptive taxation provisions.
3. ITR-2 can be filed by the Individuals and HUFs that do not have income from business or profession, and are not eligible for filing ITR-1 Sahaj.
4. Taxpayers earning from business or profession can file Form ITR-3.
5. Taxpayers other than individuals, HUFs and companies, i.e. partnership firms, LLPs etc., can file Form ITR-5.
6. ITR-6 can be filed by the companies. Trusts, political parties, charitable institutions, etc., claiming exemption income under the Income-Tax Act will have to file ITR-7.