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Government worried at tax not being deducted at source
March, 26th 2009

The government is worried because employers are not deducting tax at source, something that has amounted to more than Rs 1,000 crore.

The Income-Tax Department has written to more than 1,000 employers in the past few months on complying with rules on tax deducted at source (TDS) and advance tax depository.

"More than Rs 1,000 crore tax in TDS and advance taxes are in the process (of being) extracted from deductors to be deposited in the government accounts. We have written letters to such assessees to ensure tax compliance under this head," CBDT Member (Revenue) Saroj Bala told reporters.

The I-T department has electronic records of all non-complying taxpayers as part of the Online Tax Accounting System (OLTAS) and National Securities Depository Limited (NSDL) data, Bala said.

The department has also given Commissioners and other officials at field formations CDs on TDS returns so that the tax accrued under this head could be streamlined.

 
 
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