Get crack­ing to tackle slug­gish TDS growth, CBDT asks I-T dept

Financial Chronicle - - PLAN, POLICY - FC BU­REAU

WITH rev­enue col­lec­tion from the TDS (tax de­ducted at source) cat­e­gory wit­ness­ing a slug­gish pace, the cen­tral board of di­rect taxes (CBDT) had asked the I-T de­part­ment to pull up its socks and take “ur­gent” steps and also con­duct sur­vey op­er­a­tions to shore up the funds.

CBDT chair­man Sushil Chan­dra has is­sued a stern di­rec­tive to all the field of­fices of the in­come-tax de­part­ment in this con­text and has sought an ac­tion taken re­port in less than a month.

In his let­ter, Chan­dra has ex­pressed his “dis­ap­point­ment” over the growth rate un­der TDS col­lec­tions, say­ing some re­gions (I-T ranges) were show­ing neg­a­tive or sin­gle digit fig­ures. In view of this, he wrote, “there is an ur­gent need to step up ef­forts for aug­ment­ing TDS col­lec­tions.”

“A few in­dica­tive steps in this re­gard are con­duct­ing more TDS sur­veys to check large scale non-de­duc­tion or un­der de­duc­tion of taxes at source as well as non-de­posit of taxes al­ready de­ducted,” the chair­man told his prin­ci­pal chief com­mis­sion­ers.

Chan­dra also di­rected the de­part­ment that all cases, where TDS pay­ment by de­duc­tors in this year is more than 10 per cent lower than the pay­ments in the cor­re­spond­ing pe­riod of last year, “may be ex­am­ined on pri­or­ity for pos­si­ble spot ver­i­fi­ca­tion or sur­vey based on the com­pli­ance back­ground of the de­duc­tors.”

The CBDT chief asked the tax­man to “en­sure” that the TDS de­ducted by the state and cen­tral gov­ern­ment de­part­ments are duly col­lected. Ac­cord­ing to of­fi­cial data, the TDS col­lec­tion till Au­gust 31 was over Rs 1.65 crore which re­flects a growth rate of 10.44 per cent over the cor­re­spond­ing pe­riod of the last fi­nan­cial year.

But this rate also shows a “sig­nif­i­cant de­cline” of 7 per cent over the last fi­nan­cial year, when the growth rate was 17.44 per cent.

The de­part­ment has also been asked by the CBDT chair­man to mon­i­tor TDS col­lec­tions un­der sec­tion 194-IB of the In­come Tax Act (pay­ment of rent by cer­tain in­di­vid­u­als or Hindu un­di­vided fam­ily) and sec­tion 194-IC of the same Act (pay­ment un­der spec­i­fied agree­ment).

The de­part­ment has also been asked to keep a tab on TDS “de­fault­ers” and been in­structed that crim­i­nal pros­e­cu­tion com­plaints should be filed in such in­stances, on a case-to- case ba­sis.

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