GJ Town India

  Functionality for Scheduled Commercial Banks   Central Board of Direct Taxes (CBDT) 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.   The data on cash withdrawal indicated that huge amount of cash is being withdrawn by the persons who have never filed income-tax returns. To ensure filing of return by these persons and to keep track on cash withdrawals by the non-filers, and to curb black money, the Finance Act, 2020 w.e.f. 1st July, 2020 further amended Income-tax Act, 1961 to lower the threshold of cash withdrawal to Rs. 20 lakh for the applicability of TDS for the non-filers and also mandated TDS at the higher rate of 5% on cash withdrawal exceeding Rs. 1 crore

A tightening impact on lending standards! According to Nick Kounis, Head Financial Markets Research, ABNAmro, ‘loan demand reflects Eurozone economic weakness!’ By focussing Euro Macro, Nick says, corporate demand for bank loans now stagnating – The ECB’s Bank Lending Survey (BLS) for 2019Q1 was published. In contrast to what banks had expected in 2018Q4, lending standards on loans to non-financial companies did not tighten in 2019Q1, but remained unchanged. On balance, banks reported that cost of funds and balance sheet constraints (driven by costs related to banks’ capital position) had a tightening impact on lending standards. Also banks’ risk perceptions had had a tightening impact, for the first time since the start of 2017. However, these tightening factors were offset by an easing impact of increased competition. The forward looking part of the BLS showed that banks expected to ease lending standards slightly on balance in 2019Q2. On the other side of th