Access or invasion? Banks now have access to know your IT return filing status.Banks and post offices have been granted access to now check IT return filing status through a designated portal 'report.insight.gov.in'. Central Board of Direct Taxes (CBDT) has though notification granted this access to banks and post offices to check status of IT return of a person using his PAN.
This has been done to check large cash withdrawals by persons not filing Income Tax returns. Banks will deduct tax @2% if the cash withdrawal exceeds Rs. 20 lakh in a year and @5% if the withdrawal is over Rs. 1 crore.
Although such large amount of cash is hardly owned by a middle class person but yet such moves seems a little scary.
Isn't it a bit invasive rather than calling it a simple access. Once a law is framed, so comes the means to break the same. People dealing or possessing such large amount of cash and not filing ITR are in fact doing this on purpose and now they would device new means to evade the same.