206AB Compliance Check Verify Tax Compliance Status

The Indian government recently introduced section 206AB in the Income Tax Act, 1961, to ensure that individuals and businesses comply with their tax obligations. This section applies to persons who have not filed their income tax returns or have filed them late, resulting in their names being added to the list of defaulters.

To help taxpayers check their compliance status under section 206AB, the government has introduced an online tool called the 206AB Compliance Check. This tool allows taxpayers to verify their compliance status and avoid being subjected to higher TDS (Tax Deduction at Source) rates.

To use the 206AB Compliance Check tool, taxpayers need to enter their PAN (Permanent Account Number) and assessment year. The tool will then generate a report that indicates whether the taxpayer is compliant or non-compliant under section 206AB.

206AB Compliance Check


If the taxpayer is compliant, the tool will display a message stating that the taxpayer is compliant under section 206AB and will not be subject to higher TDS rates. However, if the taxpayer is non-compliant, the tool will display a message stating that the taxpayer is non-compliant under section 206AB and will be subject to higher TDS rates.

It is important to note that the 206AB Compliance Check tool only checks compliance status under section 206AB and not under other sections of the Income Tax Act. Taxpayers should also ensure that they have filed their income tax returns and paid any taxes due to avoid being non-compliant under other sections of the Income Tax Act.

Taxpayers who are non-compliant under section 206AB will be subject to higher TDS rates on certain payments made to them. The TDS rate under section 206AB is twice the rate specified in the relevant provision of the Income Tax Act or twice the rate specified in the relevant tax treaty, whichever is higher.

For example, if the TDS rate specified in the relevant provision of the Income Tax Act is 10%, the TDS rate under section 206AB will be 20%. Similarly, if the TDS rate specified in the relevant tax treaty is 15%, the TDS rate under section 206AB will be 30%.

Taxpayers who are non-compliant under section 206AB can rectify their non-compliance by filing their income tax returns and paying any taxes due. Once the non-compliance is rectified, taxpayers can use the 206AB Compliance Check tool to verify their compliance status under section 206AB.

In conclusion, the 206AB Compliance Check tool is an important tool for taxpayers to verify their compliance status under section 206AB and avoid being subjected to higher TDS rates. Taxpayers should ensure that they have filed their income tax returns and paid any taxes due to avoid being non-compliant under section 206AB and other sections of the Income Tax Act.

Comments

Post a Comment

Popular posts from this blog

How Our Identity Verification API Helps Businesses Stay Secure

Image
An identity verification API (Application Programming Interface) is a software tool that allows developers to integrate identity verification services into their applications or websites. Identity verification APIs provide a way for businesses to verify the identity of their customers, users, or clients, typically by comparing the information provided by the individual with data from a trusted source, such as a government database or credit bureau. There are several identity verification APIs available in the market, offered by companies such as RPACPC GST VERIFICATION API, PAN STATUS, 206AB Compliance Check   among others. These APIs typically provide a range of identity verification services, such as document verification, biometric authentication, and fraud detection.      To use an identity verification API, a developer would need to integrate the API into their application or website, typically by making API calls to the service provider's servers. The API would then return a
Read more

How PAN to GST Verification API Ensures Error-Free Transactions

Image
In today's fast-paced digital world, where every transaction happens in milliseconds and accuracy is key, businesses prioritize error-free processes. The PAN to GST Verification  API emerges as a game-changer in this landscape, revolutionizing financial transactions by ensuring seamless and accurate processes. Let's explore how this API paves the way for enhanced efficiency and reliability.   Understanding PAN to GST Verification API Before diving into its functionalities, it's essential to understand the essence of the PAN to GST Verification API. PAN, which stands for Permanent Account Number, is a unique alphanumeric code assigned to taxpayers in India. On the other hand, GST, or Goods and Services Tax, is a comprehensive indirect tax levied on the supply of goods and services. The PAN to GST Verification API acts as a bridge between these two identifiers, enabling real-time validation of GST registration details against PAN data.   Streamlining Authentication Processes
Read more

Online KYC Verification Your Key to Unlocking Seamless Transactions

Image
In today's digital age, where transactions happen at the click of a button, ensuring security and trustworthiness is paramount. This is where Online KYC (Know Your Customer) verification steps in, serving as the guardian of seamless transactions. From banking to e-commerce, KYC verification has become the cornerstone of online businesses, offering a plethora of benefits to both businesses and customers alike. What is Online KYC Verification? Online KYC Verification is a process used by businesses to verify the identity of their customers through digital means. It involves collecting and verifying personal information such as name, address, date of birth, and other relevant details to establish the authenticity of the customer. The Importance of Online KYC Verification Ensuring Security With the rising concerns of identity theft and fraud, Online KYC Verification acts as a robust security measure. By verifying the identity of customers, businesses can mitigate the risks associated
Read more