Published 07:57 IST, September 3rd 2020
CBDT provides 'ITR filing compliance check' function for banks to apply TDS on non-filers
The CBDT has issued an order furnishing information about ITR Filing Status to Scheduled Commercial Banks to keep track on cash withdrawals by the non-filers
The Central Board of Direct Taxes (CBDT) has issued an order furnishing information about IT Return Filing Status to Scheduled Commercial Banks. The order was issued in exercise of its powers conferred under section 138(1)(a) of Income Tax Act, 1961.
The data on cash withdrawal indicated that a huge amount of cash is being withdrawn by those who have never filed income tax returns, the CBDT said in a release. To ensure filing of return by them and keep track on cash withdrawals by the non-filers, and curb black money, the Finance Act, 2020 has further lowered the cash withdrawal limit to Rs. 20 lakh for applying TDS on the non-filers. It also mandated a 5% higher TDS rate on cash withdrawal exceeding Rs. 1 crore by non-filers.
The Income Tax Department has already 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 the applicable rate of TDS under section 194N of the Income-tax Act, 1961 by entering the PAN of the person withdrawing cash.
The department has now released a new functionality “ITR Filing Compliance Check” which will be available to Scheduled Commercial Banks (SCBs) to check the IT Return filing status of PANs in bulk mode. The Principal Director General of Income-tax (Systems) has notified the procedure and format for providing notified information to the Scheduled Commercial Banks.
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Salient features of the functionality
1. Accessing “ITR Filing Compliance Check”:
The Principal Officer & Designated Director of SCBs, which are registered with the Reporting Portal of Income-tax Department shall be able to use the functionality after logging into the Reporting Portal using their credentials. After successfully logging in, link to the functionality “ITR Filing Compliance Check” will appear on the home page of the Reporting Portal.
2. Preparing request (input) file containing PANs:
The CSV Template to enter PAN details can be downloaded by clicking on “Download CSV template” button on the “ITR Filing Compliance Check” page. PANs, for which IT Return filing status is required, are required to be entered in the downloaded CSV template. The current limit of PANs in one file is 10,000.
3. Uploading the input CSV file:
Input CSV file may be uploaded by clicking on Upload CSV button. While uploading, “Reference Financial Year” is required to be selected. Reference Financial Year is the year for which results are required. If selected Reference Financial Year is 2020-21 then results will be available for Assessment years 2017-18, 2018-19 and 2019-20. Uploaded file will start reflecting with Uploaded status.
4. Downloading the output CSV file:
After processing, the CSV file containing IT Return Filing Status of the entered PANs will be available for download, and “Status” will change to Available. Output CSV file will have PAN, Name of the PAN holder (masked), IT Return Filing Status for the last three Assessment Years. After downloading of the file, the status will change to Downloaded and after 24 hours of availability of the file, the download link will expire and status will change to Expired.
Scheduled Commercial Banks can also use API based exchange to automate and integrate the process with the 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 the security of information.
(Image for representation, Credits: PTI)
Updated 07:57 IST, September 3rd 2020