Banks Can Access Your IT Return Filing Status Now
A CBDT portal run by the IT department that enables banks to access IT return filing status of Permanent Account Number (PAN) holders.
The Central Board of Direct Taxes (CBDT) recently announced that a portal (report.insight.gov.in) has been created to help banks check the IT return filing status of PAN holders. The portal will be run by the Income Tax department.
It may seem like a strange move but if you look closely, this step will enable the Income Tax Department to keep a tab on large cash withdrawals, especially for people who do not file IT returns.
In case you didn’t know, the government has already made cash withdrawal above Rs. 20 lakh or more by those who have not filed taxes liable for TDS from 1st July 2020. Also, there will be an additional TDS of 5% on cash withdrawals aggregating Rs. 1 crore and above.
This means banks will now be able to alert the IT Department if certain PAN holders are making high-value transactions but not filing IT returns. This may help curb black money from circulating in the market.
What are your thoughts on this?