VittSphere ONE Calculators Blog CA Prabhakar Kumar · FCA · ICAI 560762
Calculators Blog Handle my notice
Case law › Notifications › 2021 › Notification No. 1 of 2021
Notification 22 June 2021

Notification No. 1 of 2021

DGIT(S)/ADG(S)-21 Compliance Check 1432 1 2021-22

What this is

Notification No. 1 of 2021 was published on 22 June 2021. Its subject is DGIT(S)/ADG(S)-21 Compliance Check 1432 1 2021-22.

What it does

A notification of the Directorate of Income Tax (Systems) on the Compliance Check functionality for sections 206AB and 206CCA of the Income-tax Act, 1961. So far as the extract goes, it recites that those sections, effective from 1 July 2021, impose a higher rate of deduction or collection of tax on a "specified person", defined as a person who has not filed the return 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, where the time limit for filing under section 139(1) has expired, and whose aggregate of tax deducted at source and tax collected at source is fifty thousand rupees or more in each of those two previous years. A proviso excludes a non-resident who does not have a permanent establishment in India, and the Explanation says that a permanent establishment includes a fixed place of business through which the business of the enterprise is wholly or partly carried on.

Who it reaches

The provisions it speaks to

Left, the provision of the Income-tax Act, 1961 as the instrument itself names it. Right, the section of the Income-tax Act, 2025 that the department’s own concordance maps it to — which is where the same ground is now covered.
Under the 1961 ActNow
s.139s.2, s.263, s.349
s.206ABno counterpart recorded

The instrument, as the Board published it

The department publishes this one only as a PDF, so the words below were read out of that PDF by machine. That reading can carry its own mistakes — a misread number, a broken line. Check the signed document before you rely on a figure in it. The reading also stopped short of the end of the document: what is below is the opening, not the whole of it.

DGIT(S)/ADG(S)-21 Compliance Check 1432 1 2021-22

Government of India
Ministry of Finance
Central Board of Direct Taxes
Directorate of Income Tax (Systems)

Notification No. 01 of 2021
New Delhi, 22nd June, 2021

Compliance Check Functionality for Section 206AB & 206CCA of Income-tax Act 1961

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.

Explanation.-For the purposes of this sub-section, the expression 'permanent establishment" includes a fixed place of business through which the business of the enterprise is wholly or partly carried on."

What to watch

Where you meet it

In deciding the rate at which tax is to be deducted or collected on a payment to a payee whose filing history is in question.

On the same provision

Other instruments in this library that name the same provision of the 1961 Act. They are not necessarily still operative, and a later one may have replaced an earlier one without saying so.

← Notification No. 75/2021 [F.No.IT(A)/01/2020-TPL] / SO 2581(E)  ·  Notification No. 73/2021 [F.No.370142/10/2021-TPL] / SO 2336(E) →

What a notification is. A notification is made under a power the Act itself gives, and within that power it is law — unlike a circular, which only binds the department. Its reach is the reach of the enabling provision and no wider, and the date it carries decides from when it works.

Source: the Income Tax Department’s own published text — its page for this instrument.