New Delhi
The Income Tax Department is preparing to run a major campaign across the country. Officials say the campaign will be against people and companies who have not deducted or have not cut TDS/TCS. Around 40,000 such taxpayers are under investigation. This action is being taken on the basis of tax deducted in FY 2022-23 and 2023-24. The Central Board of Direct Taxes (CBDT) has made a 16 -point plan to catch TDS defaulters. Apart from this, the data analytics team has prepared a full list of such taxpayers for investigation.
A senior official said, ‘We have data from the analytics team. If no one has deposited tax, we will first inform them about it. Officers will repeatedly focus on those who break the rules. They will investigate cases where there is a big difference between tax deduction and advance tax payment. The cases which have repeated changes and improvements in the names of the cut will also be investigated. Also, companies will also be investigated who have used sick units or deficit companies in audit.
What does law say
The board has asked the assessment officials to report large rejection cases under Section 40 (A) (IA) of the Income Tax Act. This section does not allow cuts in cases where TDS has not been deducted or has not been deposited with the government. Tax officials will also keep a close watch on cases where TDS returns have been amended several times and the default amount has decreased significantly.
The board has asked the field officials to also pay attention to the complaints filed by the cuts. Use data analytics to identify patterns and irregularities in TDS payment. The official said that no one will be disturbed in this like the earlier campaigns of the department. In this year’s budget, the central government has announced to rationalize the TDS and TCS rates. The number of rates and the TDS deduction range have been reduced.
Action on defaulter
The official said, “TDS compliance for honest taxpayers has been relaxed. But strict action will be taken against those who deliberately default. This will make the tax system fair and justified. This campaign hopes the government that tax evasion will be reduced and revenue will increase. Also, honest taxpayers will get encouragement. This will also strengthen the country’s economy.