New Delhi, September 03: The Income Tax department said that it has launched a functionality for scheduled commercial banks to check status of income tax returns filed by entities based on their Permanent Account Number.
The I-T department has already provided a functionality Verification of applicability u/s 194N’ for banks and post offices since July 1, 2020.
The Income Tax department has already provided a functionality Verification of applicability u/s 194N’ for banks and post offices since July 1, 2020.
Through a fresh notification, the Central Board of Direct Taxes included scheduled commercial banks in the list of agencies with which tax authorities can share information.
Through this functionality, bank/post office can get the applicable rate of TDS under section 194N of the Income-tax Act, 1961 by entering the PAN of the person who is withdrawing cash.
The Department has now released a new functionality ITR Filing Compliance Check which will be available to Scheduled Commercial Banks to check the IT Return filing status of PANs in bulk mode.
It said that the data on cash withdrawal had indicated that a huge amount of cash is being withdrawn by persons who have never filed income tax returns.
To ensure filing of return by these persons and to keep track on cash withdrawals by non-filers, and to curb black money, the Finance Act, 2020 with effect from July 1, 2020, further amended I-T Act, 1961, to lower the threshold of cash withdrawal to Rs 20 lakh for the applicability of TDS for non-filers.
It also mandated TDS at a higher rate of 5 per cent on cash withdrawal exceeding Rs 1 crore by non-filers.
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