|
|
 |
|
|
 |
|
|
|
|
| |
|
|
|
|
|
|
|
| « Income Tax (16th Amendment) Rules, 2020: CBDT amends rule... | How to file income tax returns offline: Step-by-step guide... » |
Here's how banks will find out if you have filed last 3 years income tax returns |
|
|
| July, 11th 2020 |
To discourage cash transactions and to move towards the cash-less economy, the Budget 2019 inserted a new Section 194N to the Income-tax Act, 1961. Section 194N provides that a bank or a cooperative bank or a post office is required to deduct tax at source at the rate of 2% from the amount withdrawn in cash from any account (saving or current account) if the aggregate of the amount of withdrawn from one or more account exceeds Rs. 1 crore during the year.
The Budget 2020, has further expanded the scope of this section to provide different tax rates for two different class of persons and two threshold limits. A new proviso has been inserted to Section 194N, which changes the threshold limit for deduction of tax from Rs. 1 crore to Rs. 20 lakh if the person, has not filed income tax return ITR for three financial years immediately preceding the financial year in which cash is withdrawn, and the due date for filing ITR under section 139(1) has expired (usually July 31). The deduction of tax under this situation shall be at the rate of:
(a) 2% of the amount withdrawn in cash, if the aggregate of the amount withdrawn during the financial year exceeds Rs. 20 lakhs but does not exceed Rs. 1 crore; or
(b) 5% from the amount withdrawn in cash, if the aggregate of the amount withdrawn during the financial year exceeds Rs. 1 crore.In the above situation, tax shall be deducted on the amount exceeding Rs. 20 lakhs or Rs. 1 crore, as the case may be.
It was apprehended that verifying the status of ITR of account-holder would be a complex task for the banks and other financial institutions. Banks will be required to ask the account holders to submit the proof of ITR filing for preceding 3 financial years. Thus, to simplify the process, the CBDT has introduced a functionality on the e-filing platform to enable the bank or a co-operative bank or a post office to check whether person withdrawing cash is falling within the expanded proviso or not ..
This new functionality for determining applicable TDS rate under section 194N can be used without log-in on the e-filing portal. How to use this functionality?Step 1: Go to the e-filing portal of Income-tax Dept. (https://www.incometaxindiaefiling.gov.in/home) and click on the link of 'Verification of applicability under section 194N' given on the left-hand side.
|
|
|
|
|
|
|
|
|
|
Copyright 2024 CAinINDIA All Right Reserved. Designed and Developed by Ritz Consulting
|
|
|
|
|
|
