Bulk verification of 206AA / 206AB status

PAN is operative (206AA)

Quick Access : Payroll Manager > Compliance Check
Accessible to : Payroll Manager

As per Income Tax rules penal tax rates need to be levied on employees / retainers / contractors if they are falling under the provisions of Section 206AA or 206AB. Refer to the article on Tax deduction under section 206AA / 206AB for more details.

To check if your employees / retainers / contractors are not falling under these sections you will have to do the following steps -

1. Click on Compliance Check on the Quick Access menu
2. You will be navigated to the Compliance Check page as shown below

3. Click on download template, you will be able to download a list of all active employees and their PAN numbers

4. Go to  https://report.insight.gov.in and upload this file

5. You will get an output from the portal, download it and upload it in EazeWork using "Upload File" button. "Upload File" format will have Three columns "PAN", "PAN Status" and  "Specified Person u/s 206AB & 206CCA"

6. If any Regular employee's PAN is inoperative or if any Retainer employee has not filed their ITR for previous year you will see the status updated as shown above. For these employees on Payroll Details page on Statutory Details tab you will see the status against the parameters

- "PAN is operative (206AA)" as No
- "Non filing of ITR (206AB)" as Yes

In the subsequent payroll runs, system will deduct TDS as per section 206AA / 206AB for these employees. You can change the status of either parameter manually from Payroll Details > Statutory Details page but it is not recommended. You should recheck the status before you run the next month's payroll and if the status has changed on the portal then the parameters will be automatically updated when the file is uploaded.

Value of parameter "Non filing of ITR (206AB)" will be changed from Yes to No after March payroll is run as this is linked to filing of previous year's income tax return.

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