Functionality added on E-filing website to check status of last 3 years ITR as per section 194N

Section 194N was reintroduced by Finance Act, 2020 and same is now applicable from 01.07.2020.

According to the above section any bank, co-operative society or post office who pays any sum exceeding Rs. 1 crore (cash withdrawal) from one or more accounts to a person, it shall be liable to deduct TDS at the rate of 2% on amount exceeding Rs. 1 crore.

However, in case of a recipient who has not filed the returns of income for “all” of the three previous assessment years for which the time limit of file return of income under section 139(1) has expired, TDS shall be deducted when the sum in cash shall exceed 20 lakh rupees during the previous year and the deduction shall be at the rate of 2% where the amount paid in cash is between 20 lakh to 1 crore and at 5% where the amount, paid in cash exceeds 1 crore rupees.

Till date there was no machinery to check applicability of above and to check whether TDS will be deducted after the amount exceed Rs. 20 lakh or 1 crore.

Now, CBDT has added the functionality on E-filing website, whereby a person can enter PAN of assessee and his/ her mobile number and the website shall show whether to deduct TDS at the rate of 2% above Rs. 1 crore or Rs. 20 lakh. Same can be seen in pictures below:

Thus, even if you have filed return for any one year it will show result as above for your PAN also and TDS would be deducted only if amount withdrawn exceeds Rs. 1 crore.

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