Shubham Jaiswal (email@example.com)
As the new rules relating to TDS (tax deducted at source) on cash withdrawals came into force from this month, the income tax department has made it easier for banks, and other financial institutions to do the calculation. A functionality to calculate TDS rate under Section 194 N has been enabled in income tax department’s e-filing portal.
The service is, however, meant only for official uses by the banks, co-operative societies and post offices. Under the ‘Quick Links’ section on the e-filing portal, a new sub-section called ‘Verification of applicability u/s 194 N’ has been inserted.
To verify the applicability of TDS rate, one can go to the link and give his or her PAN (Permanent Account Number) and mobile number where an OTP will be shared. Banks and other financial institutions can use the facility to calculate the TDS rate applicable in your case.
Otherwise, you may be asked to sign a declaration letter along with a copy of acknowledgment of return of Income (ITR-V) of FY 2018-19, FY 2017-18 and FY 2016-17 for verification purposes.