CBDT provides 'ITR filing compliance check' function for banks to apply TDS on non-filers

Central Board of Direct Taxes (CBDT) has issued an order furnishing information about IT Return Filing Status to Scheduled Commercial Banks. order was issued in exercise of its powers conferred under section 138(1)(a) of Income Tax Act, 1961.

data on cash withdrawal indicated that a huge amount of cash is being withdrawn by those who have never filed income tax returns, CBDT said in a release. To ensure filing of return by m and keep track on cash withdrawals by n-filers, and curb black money, Finance Act, 2020 has furr lowered cash withdrawal limit to Rs. 20 lakh for applying TDS on n-filers. It also mandated a 5% higher TDS rate on cash withdrawal exceeding Rs. 1 crore by n-filers.

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Income Tax Department has alrey provided a functionality “Verification of applicability under section 194N” on its website for banks and ost offices since July 1, 2020. Through this, banks or post offices can get applicable rate of TDS under section 194N of Income-tax Act, 1961 by entering PAN of person withdrawing cash.

department has w released a new functionality “ITR Filing Compliance Check” which will be available to Scheduled Commercial Banks (SCBs) to check IT Return filing status of PANs in bulk mode. Principal Director General of Income-tax (Systems) has tified procedure and format for providing tified information to Scheduled Commercial Banks.

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Salient features of functionality

1. Accessing “ITR Filing Compliance Check”:

Principal Officer & Designated Director of SCBs, which are registered with Reporting Portal of Income-tax Department shall be able to use functionality after logging into Reporting Portal using ir credentials. After successfully logging in, link to functionality “ITR Filing Compliance Check” will appear on home p of Reporting Portal.

2. Preparing request (input) file containing PANs: 

CSV Template to enter PAN details can be downloed by ing on “Downlo CSV template” button on “ITR Filing Compliance Check” p. PANs, for which IT Return filing status is required, are required to be entered in downloed CSV template. current limit of PANs in one file is 10,000.

3. Uploing input CSV file: 

Input CSV file may be uploed by ing on Uplo CSV button. While uploing, “Reference Financial Year” is required to be selected. Reference Financial Year is year for which results are required. If selected Reference Financial Year is 2020-21 n results will be available for Assessment years 2017-18, 2018-19 and 2019-20. Uploed file will start reflecting with Uploed status.

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4. Downloing output CSV file: 

After processing, CSV file containing IT Return Filing Status of entered PANs will be available for downlo, and “Status” will change to Available. Output CSV file will have PAN, Name of PAN holder (masked), IT Return Filing Status for last three Assessment Years. After downloing of file, status will change to Downloed and after 24 hours of availability of file, downlo link will expire and status will change to Expired.

Scheduled Commercial Banks can also use API based exchange to automate and integrate process with Bank’s core banking solution. Scheduled Commercial Banks are required to document and implement appropriate information security policies and procedures with clearly defined roles and responsibilities to ensure security of information.

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(Im for representation, Credits: PTI)