Missed ITR deadline: you may have to pay higher TDS if you missed the ITR deadline last year; how banks can check if you are a “determined person”

The CBDT introduced sections 206AB and 206CCA of the Finance Act 2021, which were incorporated into the Income Tax Act 1961 with effect from 1 July 2021. Under these sections, if you missed the ITR filing for the 2020-21 fiscal year (2021-22 assessment year), then higher ADTs may be applicable on certain income you will earn in the current 2022-23 fiscal year. You will be referred to as a “determined person”.

Who is a definite person?

A “specified person” is a person who has not filed a tax return for the taxation year immediately preceding the fiscal year in which tax is to be withheld, for whom the deadline for filing a return of income has expired and, in which case, the total of the tax withheld at source and the tax collected at source during the said preceding year is Rs 50,000 or more.

The deadline to file an original ITR for fiscal year 2020-2021 was December 31, 2021. If you have not filed your ITR by this deadline, you will be subject to the higher TDS amount in fiscal year 2022 -23.

Also Read: Missed RTI’s Filing for Fiscal Year 2020-21? You could be responsible for a higher TDS in the current fiscal year 2022-23

According to the new imposed article, “For the purposes of this article “specified person” means a person who has not provided the tax return for the relevant taxation year in the preceding year immediately preceding the fiscal year in which tax shall be deducted, for which the time limit for furnishing the tax return under subsection (1) of Section 139 has expired and the total of the tax withheld at source and the tax collected at the source in his case is fifty thousand rupees or more in the said preceding year: provided that the specified person does 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 activities of the enterprise are carried on in whole or in part. »

Higher tax rate that will be applicable to specified persons

In accordance with income tax laws, the highest TDS/TCS will be deducted at the highest rate of the following for specified persons:

(a) Twice the rate specified in the relevant provision of the Law; Where

b) Twice the current rate(s); Where

c) The rate of five per cent.

How will banks check if higher TDS should be deducted?

The Department of Income Tax, via notification on June 9, 2022, released a compliance check feature for Sections 206AB and 206CCA to help tax deducers/collectors like banks determine if a person is a “specified person” as defined by Section 206AB & 206CCA. This capability is provided by the Department of Income Tax (https:/lreport.insight.gov.in).

To determine if a larger TDS is needed, a bank or other financial institution can use the Department of Income Tax’s “Conformance Check for Section 206AB & 206CCA”. To determine whether the individual concerned is a specific person for whom a higher TDS is applicable, the tax deductible must enter a single PAN or several PANs.

On the Compliance Check for Section 206A8 & 206CCA page, click the -PAN Search tab to access the PAN Search mode features. In this mode, only one valid PAN and captcha can be submitted at a time, and the output will include the fields below.

Fiscal Year: Current Fiscal Year


STOVE: As stated in the entry.


Last name: Hidden name of the Person (according to PAN).


PAN Award date: Date of allocation of the PAN.


PAN Aadhaar Link Status: PAN-Aadhaar link status for individual PAN holders as of date. Response options are Linked (PAN and Aadhaar are linked), Unlinked (PAN and Aadhaar are not linked), Exempt (PAN is exempt from PAN-Aadhaar linking requirements as per Department of Revenue Notice No. 37/ 2017 of May 11, 2017) or not applicable (the PAN belongs to a non-individual person).


Specified person under 206AB and 206CCA: The response options are Yes (PAN is a determined person according to article 206ABI206CCA at the date) or No (PAN is not a determined person according to article 206ABI206CCA at the date).

In addition, the date on which “specified person status” as defined by Sections 206AB and 206CCA is determined will also be included in the output.

Click here to read the full CBDT notification. https://incometaxindia.gov.in/communications/notification/notification-no-01-of-2022.pdf

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