ITR Filing Compliance Check Functionality
Central Board of Direct Taxes (CBDT) provides to Scheduled Commercial Banks
Under Section 138(1)(a) of the Income Tax Act, 1961, CBDT has issued an order dated 31.08.2020 for furnishing information to scheduled Commercial Banks about ITR return filling status.
The Income tax department based on the data available with them have found that there are persons who have never filed income tax returns even though they withdraw huge amount of cash.
Considering the above class of people who are not active tax payers, CBDT has already lowered the cash withdrawal limit to Rs.20 lakhs for the applicability of TDS with 2% TDS deduction and also mandated TDS at the higher rate of 5% on cash withdrawal exceeding Rs. 1 crore for the following objective:
a) ensure filling of return by these persons
b) to keep track record on cash withdrawal.
c) to curb black money
"Verification of applicability u/s 194N" function is already provided for Bank and Post offices since 1st July,2020 by Income Tax Department through which they get the applicable rate of TDS u/s 194N of the Income Tax Act,1961 by entering the PAN of the person who is withdrawing the cash
Now CBDT has came out with new functionality "ITR Filing Compliance Check" which will be provided to Scheduled Commercial Bank so that they can check the Income Tax return filling status of PANs in bulk mode.Through this function, bank can have PAN, Name of the PAN holder, IT Return filing Status for last three Assessment years of the persons.
The format and procedure for providing information to the Scheduled Commercial Banks has also been notified by the Income Tax. The important features of the using functionality are as under:
a) Scheduled Commercial Banks through their Principal officer and Designated Director can access the "ITR Filing Compliance Chcek" functionality by logging into Reporting portal of Income- Tax Department using their credentials.
b) PANs are required to be entered in the downloaded CSV template (downloaded from ITR Filing Compliance Check page) as a process of request to know the IT return filing status. The maximum PAN in one file is 10000.
c) Uploading the Input CSV file after selecting 'Reference Financial Year' which will the Financial year for which results are required. For example: If Reference Financial year is 2019-20 then result will be available for Assessment year 2017-18, 2018-19 and 2019-20. The moment file is uploaded it will start reflecting Uploaded Status
d) After processing, ITR Filing Status of the entered PANs will be available for downloading in the form of Output CSV file. These Output file will have PAN, Name of the PAN holder, ITR Filing Status for last three Assessment Years.
The status will change to downloaded after the file has been downloaded and download link will get expire and expired status will be displayed after 24 hours from download.
The appropriate information security policies and procedures are required to documented and implemented by the Scheduled Commercial Banks. In order to ensure security of information, roles and responsibility are to be clearly defined.
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