Section 206AB & Section 206CCA API

Section 206AB and Section 206CCA have been introduced to Income Tax Act, 1961 under the Finance Act 2021 and will be in effect from 1st July 2021.

What are Section 206AB and Section 206CCA?

The newly proposed Section 206AB and Section 206CCA mandate a higher deduction/collection rate for a category of “specified person”. The deductee must meet the below criteria to be considered as a Specified person under Section 206AB & Section 206CCA:

  1. The deductee/collectee has not filed the Income Tax Return for the last two assessment years, previous to the year for which the tax is required to be deducted; and
  2. If the aggregate of TDS and TCS for collectee is INR 50,000 or more in each of these two previous years

For such a specified person, Section 206AB dictates a higher deduction rate would be applicable. The higher of the following rate would be applicable:

  • Twice the rate specified in the relevant provision of the Act, or
  • Twice the rates in force or
  • The rate of 5%

For such a specified person, Section 206CCA dictates a higher collection rate would be applicable. The higher of the following rate would be applicable:

  • At twice the rate or rates in force; or
  • At the rate of 5%

How does Section 206AB and Section 206CCA API help?

Compliance Check for Section 206AB & 206CCA API by Sandbox takes in the PAN numbers and provides and Excel file containing the Specified person status as "Yes/No" under section 206AB and 206CCA. This API is asynchronous in nature and is more suited for bulk checks.

HTTP Method

Resource

Description

POST

/itd/reporting-portal/tds/206-ab

Accepts a list of PAN Numbers and initiates a Job to verify the status of whether the requested PAN numbers fall under the category of Specified Person under Section 206AB and Section 206CCA

GET

/itd/reporting-portal/tds/206-ab?job_id={{jobId}}

Accepts Job ID and returns the Job status and on Job Completion provides Signed URL of XLSX file of Response.

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Did you know?

You can configure a Postback for events of job corresponding to Compliance Check u/s 206AB and 206CCA!

Head to Postbacks to know how to set postback on events for this job!

What does the response XLSX file contain?

Compliance Check for Section 206AB and Section 206CCA API responds with signed URL of an Excel file which gives you relevant information to Section 206AB & CCA of PAN provided in the input. Below is an example of the data obtained:

PAN

Name

PAN Allotment Date

PAN-Aadhar Link Status

Specified person u/s 206AB & 206CCA

1

DGXXXXXA

YXXH MXXXXI

12-06-2018

Linked

Yes

2

CLXXXXXW

HXXXH BXXXXXA

11-12-2009

Not Linked

No


What’s Next

Click on "Compliance Check Section 206AB & Section 206CCA API" to view API Reference

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