Banks can now check your ITR filing status
The Income Tax department has launched a functionality for scheduled commercial banks to check status of income tax returns filed by entities based on their Permanent Account Number (PAN).
The Department has now released a new functionality “ITR Filing Compliance Check” which will be available to Scheduled Commercial Banks (SCBs) to check the IT Return filing status of PANs in bulk mode.
What does this mean for you?
Banks will now directly verify if you have been filing your Income Tax Returns on a regular basis. This has a few implications for you:
Pre-loan screening: Banks will be able to conduct ITR filing compliance checks to see if the loan applicant has been filing ITRs. ITR filing history will also be available giving banks greater confidence. It also ensures that banks get first hand information and do not have to worry about fake ITRs created using software.
Annual review:
If you already have a loan, banks will now be able to verify that you are being compliant and filing your ITR on a yearly basis. Any non-filing can be considered an early sign of a red flag.
Marketing and reminders
Banks will almost definitely use this information to send you reminders to file your ITR and may also tie-up with CAs to push return filing products. This has benefits for everyone involved where you can receive quality services, while banks and CAs can benefit from additional business.
Read on about the press release from CBDT below:
The Principal Director General of Income-tax (Systems) has notified the procedure and format for providing notified information to the Scheduled Commercial Banks.
The salient features of the using functionality are as under:
Accessing “ITR Filing Compliance Check”: The Principal Officer & Designated Director of SCBs, which are registered with the Reporting Portal of Income-tax Department (https://report.insight.gov.in) shall be able to use the functionality after logging into the Reporting Portal using their credentials. After successfully logging in, link to the functionality “ITR Filing Compliance Check” will appear on the home page of the Reporting Portal.
Preparing request (input) file containing PANs: The CSV Template to enter PAN details can be downloaded by clicking on “Download CSV template” button on the “ITR Filing Compliance Check” page. PANs, for which IT Return filing status is required, are required to be entered in the downloaded CSV template. The current limit of PANs in one file is 10,000.
Uploading the input CSV file: Input CSV file may be uploaded by clicking on Upload CSV button. While uploading, “Reference Financial Year” is required to be selected. Reference Financial Year is the year for which results are required. If selected Reference Financial Year is 2020-21 then results will be available for Assessment years 2017-18, 2018-19 and 2019-20. Uploaded file will start reflecting with Uploaded status.
Downloading the output CSV file: After processing, CSV file containing IT Return Filing Status of the entered PANs will be available for download and “Status” will change to Available. Output CSV file will have PAN, Name of the PAN holder (masked), IT Return Filing Status for last three Assessment Years. After downloading of the file, the status will change to Downloaded and after 24 hours of availability of the file, download link will expire and status will change to Expired.
Scheduled Commercial Banks can also use API based exchange to automate and integrate the process with the Bank’s core banking solution. Scheduled Commercial Banks are required to document and implement appropriate information security policies and procedures with clearly defined roles and responsibilities to ensure security of information.
Get a personalized quote for filing your Income Tax Return for FY 2019-20
STEP 1 Download our Sources of Income File
STEP 2 Fill up file with your sources of income
STEP 3 Send us the file at support@thegalacticadvisors.com
STEP 4 Sit back and relax as our team shares with you a personalized quote for filing Income Tax Returns within 24 hours!
