Monday, June 28, 2021

Vendor Verification Method for Higher TDS Deduction

Cases of Deduction of TDS at Higher Rate (Current Discussion)

1. TDS deduction is to be carried out at a higher rate for non-filers of Income Tax Returns as explained by us here, as read under section 206AB of the Income Tax Act.

2. Further, as per Rule 114AAA, the PAN of a person will become inoperative if he fails to link it with Adhaar. Such invalidity of Aadhaar will mean deduction of TDS for such person in a manner that PAN has not been furnished (i.e. @ 20%) as per section 206AA of the Income Tax Act. (The due date for linking has been extended to 30th September 2021)

Checking if Payee falls under the Above Categories

1.Register on the Reporting Portal ( by logging in to using login credentials of TAN and clicking on the link, “Reporting Portal”, which is available under “Pending Actions” Tab of the e-filing Portal.

2. After being redirected to the Reporting Portal, select Compliance Check (Tax Deductor & Collector) under Form Type.

3. Enter details of the principal officer by clicking on “Add Principal Officer” button. 

4. After submission of registration request, email notification will be shared with the Principal Officer along with ITDREIN details and login credentials.

5. After successfully logging in, link to the functionality “Compliance Check for Section 206AB & 206CCA” will appear on the home page of the Reporting Portal. Click on "PAN Search"

5. The following details will be visible about the PAN

- Financial Year: Current Financial Year
- PAN: As provided in the input.
- Name: Masked name of the Person (as per PAN).
- PAN Allotment date: Date of allotment of PAN.
- PAN-Aadhaar Link Status: The response options are "Linked", "Not Linked", "Exempt" or "Not-Applicable" (PAN belongs to non-individual person).
- Specified Person u/s 206AB & 206CCA: 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).

6. You can also do a "Bulk Search" of up to 10,000 PAN by downloading the CSV Template and uploading the filled in file.


Saturday, June 19, 2021



 ITAT Agra held that  Instruction No. 03/2017, dated 21-2-2017,to the Assessing Officers are statutory and binding on revenue, therefore the Assessing Officer can not tax cash deposit in bank account during Demonetization Scheme, 2016, as unexplained income , the amount less than  2.5 lakhs by and Housewife out her savings since last several years to meet family emergency needs in the case of  Smt Uma Aggarwal v ITO 1(3) Gwalior  [2021] 127 735 (Agra - Trib.)