Listed commercial banks will now be able to see how much income tax returns a company has filed with the help of a PAN card. The Income Tax Department introduced this new system on Wednesday.
The Income Tax Department had found that large amounts of cash are withdrawn by many people but returns are not filed on their behalf. This step has been taken after this. The Income Tax Department is now preparing to clamp down on such people.
Under the Financial Act 2020, there is a provision to levy TDS on withdrawals of more than Rs 20 lakh for those who do not file returns. It has a provision to levy TDS at the rate of five per cent over 1 crore withdrawals.
According to the new CBDT notification, now information on income tax returns will also be shared with listed commercial banks. The CBDT issued a statement stating that through the new arrangement, banks and post offices will be able to get the applicable rate of TDS from the PAN of the person withdrawing cash under Section 194N of the Income Tax Act, 1961. You will also be able to see how much income tax the individual or company has paid.