Streamlining 206AB Compliance Check and Verification using API solutions...
    04 Jul 2023

    Streamlining 206AB Compliance Check and Verification using API solutions

    206AB Compliance

    What are Section 206AB Compliance and its’ various aspects?

    Section 206AB Compliance provides for a higher rate of deduction of tax at source (TDS) for non-filers of income tax returns. Section 206AB is inserted after Section 206AA of the Income Tax Act. A non-filer is a person who has not filed their income tax return for the preceding financial year, and the ITR filing due date has expired.

    Who is liable to pay the higher rate of TDS?

    The higher rate of TDS is applicable to a “specified person”. A specified person is a person who:

    • Has not filed the ITR for the preceding FY; and
    • The aggregate amount of tax deducted or collected (TDS and TCS) in the last FY is Rs. 50,000 or more.

    What is the higher rate of TDS and the applicability of PAN?

    The higher rate of TDS is 20% of the amount paid or credited to the non-filer, whichever is higher. If the non-filer provides their PAN, the higher rate of TDS will not apply, but still, TDS will be deducted at the applicable rate. If the non-filer does not provide their PAN, TDS will be deducted at 20% or rates applicable as per the section, whichever is higher. 

    What is Form 206AB?

    Form 206AB is a declaration form that is used by a specified person to declare that they have filed their ITR for the preceding FY.

    Why 206AB Compliance Check Matters in Today’s Financial Landscape

    206AB Compliance Check holds great significance in today’s financial landscape and plays a pivotal role in fostering fair tax practices by encouraging tax filing, preventing tax evasion, balancing the tax burden, and enhancing revenue collection. It also helps to create a more equitable and transparent tax system, benefiting both the government and the taxpayers alike.

    Non-compliance with the provisions of Section 206AB can lead to several potential consequences like higher tax deductions, increased financial liability, penalties, and legal repercussions, negative impact on reputation, and increased scrutiny and audits. In all cases, whether it is non-filing or inaccurate filing, the impact of 206AB on entities is primarily seen through the application of higher TDS rates.

    To avoid the potential consequences, it is crucial to understand and adhere to the provisions of 206AB, file accurate income tax returns, and fulfill tax obligations in a timely manner. Seeking professional advice and utilizing reliable compliance check services can help ensure compliance and mitigate the risks associated with non-compliance.

    Tips and Strategies to ensure compliance and maintain a favorable 206AB Verification Status

    File Income Tax Returns on Time-

    Ensure timely filing of your income tax returns, adhering to the deadlines provided by the Income Tax Department. Filing within the prescribed timelines helps avoid penalties and reduces the chances of being categorized under 206AB.

    Provide Accurate and Complete Information-

    When filing your income tax returns, ensure that all information provided is accurate and complete. Double-check your income details, deductions, and other relevant information to minimize the risk of discrepancies that could trigger a 206AB verification status.

    Maintain Proper Documentation-

    Keep organized records of your financial transactions, income, and expenses. This documentation serves as evidence and supports the accuracy of the information provided in your tax returns. Good record-keeping helps demonstrate compliance and can be invaluable in case of any scrutiny.

    Seek Professional Guidance-

    Consider consulting with a tax professional or chartered accountant who can provide expert advice on tax compliance. They can assist in preparing accurate returns, identifying deductions, and ensuring adherence to tax regulations, reducing the likelihood of falling under the purview of 206AB.

    Stay Updated with Tax Laws-

    Stay informed about changes in tax laws and regulations. Regularly check updates from the Income Tax Department or seek guidance from tax professionals to ensure you are aware of any amendments that could impact your compliance status.

    Utilize Compliance Check Services-

      Consider utilizing compliance check services provided by reputable platforms like RPACPC. These services use advanced technology and APIs to verify your compliance status and help you understand any potential issues. By utilizing such services, you can proactively address compliance concerns and rectify any discrepancies.

      Respond to Notices Promptly-

        If you receive any notices or communication from the Income Tax Department, respond to them promptly. Address any queries, provide requested information, or rectify any errors to ensure smooth communication and demonstrate your commitment to compliance.

        RPACPC’s Cutting-Edge Solutions: Streamlining 206AB Compliance Check and Verification Status

        The API-enabled identity verification solutions have become a boon for organizations considering the immense benefits that they offer as compared to the traditional and time-taking manual process. The easy, robust, and real-time solutions through APIs ensure cost-effective identity verification for businesses.

        One of the reliable API-enabled identity verification solution providers in India is RPACPC. Through trusted and efficient services, RPACPC has made a mark for itself. With a bouquet of offerings like PAN Verification, Aadhaar Verification, TAN-PAN Verification, PAN Status, and 206AB Compliance Check, it has all the end-to-end tech-efficient solutions that a business requires.

        One of the most in-demand products is 206AB Compliance Check. RPACPC’s API-enabled solution provides you with the simplest and most reliable way to check whether your vendor/client/customer has filed for ITR or not. RPACPC also helps you to check your vendor’s compliance in just a few easy steps.

        Transforming complexity to simplicity has always been the aim of RPACPC and it is not just a saying but there are many practical cases where businesses have benefitted through the services. The 206AB Compliance Solutions offers a convenient and foolproof system that offers accurate data fetched from government sources and repositories on a real-time basis.

        With state-of-the-art features like –

        Bulk verification: 

        Verify multiple taxpayer compliance statuses efficiently and in one go, saving time and effort.

          Regulatory Compliance Check: 

          Ensure adherence to tax regulations with a comprehensive and reliable compliance check solution for 206AB verification.

          Real-time verification: 

          Get instant and up-to-date verification results for timely decision-making and accurate tax compliance.

          End-to-End Encryption: 

          Protect sensitive data through secure encryption protocols, ensuring the confidentiality of taxpayer information.

          Low Latency Rate: 

          Experience swift verification processes with minimal delays, ensuring quick turnaround times for compliance checks.

          Easy to Integrate: 

          Seamlessly integrate RPACPC’s 206AB Compliance Check into your existing systems or workflows, simplifying implementation.

          Plug and Play: 

          Easily deploy the compliance check solution without extensive setup requirements, enabling hassle-free usage.

          24/7 Active Support: 

          Access round-the-clock assistance from a dedicated support team to address any queries or concerns promptly.

          Highly Secured: 

          Benefit from robust security measures to safeguard data integrity and protect against unauthorized access, ensuring a high level of data security.

          With the above amazing features, RPACPC’s API solution lets you know the real-time 206AB verification status and that’s not all. The system has been designed to process bulk data and give error-free output. Whether it is a single person or to verify a number of people, just by entering the PAN Number, you can get many useful outputs.

          In today’s complex financial landscape, understanding and complying with 206AB provisions are crucial for individuals and businesses. Failure to do so can result in penalties and legal complications. By leveraging RPACPC’s cutting-edge 206AB Compliance Check and Verification Status Solutions, you can simplify the compliance process, ensure accurate tax calculations, and maintain a favorable verification status.

          Take control of your financial future. Verify your 206AB status with RPACPC today and unlock the peace of mind that comes with knowing you’re on the right track. Don’t let non-compliance jeopardize your financial security. Choose RPACPC and embrace a compliant and prosperous future.

          Take the first step towards financial confidence and secure your compliance status with RPACPC’s trusted services.  

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