New Delhi: In a statement on Wednesday, the CBDT said that the Principal Director General of Income Tax (Systems) has notified the procedure and format for providing notified information to the scheduled commercial banks.
“The Central Board of Direct Taxes in exercise of powers conferred under section 138(1)(a) of Income Tax Act, 1961, has issued Order in F.No. 225/136/2020/ITA.II dated 31.08.2020, for furnishing information about IT Return Filing Status to Scheduled Commercial Banks, notified vide notification No. 71/2020 dated 31.08.2020 under sub-clause (ii) of clause (a) of sub-section (1) of section 138 of the Act,” it said.
Noting that the data on cash withdrawal indicated that a huge amount of cash is being withdrawn by persons who have never filed income tax returns, the CDBT statement said that to ensure filing of returns by these persons and to keep track on cash withdrawals by the non-filers, and to curb black money, the Income Tax Act was amended with effect from July 1 to lower the threshold of cash withdrawal to Rs 20 lakh for the applicability of TDS for the non-filers.
It also mandated TDS at the higher rate of 5 per cent on cash withdrawal exceeding Rs 1 crore by the non-filers.
