« Top Headlines » Open DEMAT Account in 24 hrs  New Income Tax Act: ITR forms to be issued prior to FY28, says govt  GSTR-9C Explained: Turnover Limit, Due Date, Statement Format & How to Prepare It in Tally Prime (2025 Update)  Will Income Tax Department release new ITR forms by January 2026? Finance Ministry says this  The Government of India has strengthened MSME protection through strict payment rules, ensuring that Micro & Small Enterprises receive timely payments from buyers. Under the MSME Development Act (MSMED Act), 2006, buyers must make payments within:  ITR Refund Delays in India: Why They Happen & How to FastTrack Your Refund in 2025  ITR Refund Delay: From Bank Errors To Department Checks, 5 Big Reasons Your Refund Gets Stuck  Income Tax Slabs 2025: New Vs Old Regime; Which One Is Better For You For FY2025-26?  Seamless Integration: How Tally Prime Connects Businesses to the Digital Economy  Govt to notify new ITR forms, Income Tax Act 2025 rules by January 2026: CBDT chief  Digital Efficiency for MSMEs: The Tally Prime Advantage  5 Ways Tally Prime Reduces Cost and Boosts Productivity for Startups «  TDS on Esop: SC quashes case against Infosys... Banks want I-T cap on pension contribution to go... » Taxmen may source defence min supplies for adding to collections January, 10th 2008 The government is toying with a proposal to bring procurement contracts of the defence ministry under tax collected at source (TCS) net this Budget. If the proposal goes through, companies supplying to defence ministry will have to face tax deduction while receiving payments for such supplies. However, sources said the deduction would be made applicable only above a threshold. Also, the rate of tax is likely to be kept low. Sources said only large-sized contracts may be brought into the TCS net initially. At present, contractual professional, technical and other categories are under the tax deducted at source (TDS) net. TCS is applicable on paper, timber and tobacco, among others. In order to increase the compliance and revenue collections, the government may look at enhancing the existing provisions or introduce new ones to cover new/additional transactions, KPMG partner Vikas Vasal said.Earlier, the income-tax department had found that TDS collections from government departments have been low. Of the total collection of Rs 70,000 crore in 2006-07, just Rs 1,500 crore came from government departments. This is even as some departments like railways and defence are the largest providers of contracts. It had even proposed to conduct audits of such departments to ascertain the reason behind lower collection of TDS/TCS.Since TDS and TCS are considered an efficient way of collecting tax and establishing an audit trail, the government is keen on strengthening its administration. Under the system, the government gets its revenues outright while the taxpayer who does not have any income tax liability and can claim a refund in respect of the deduction made from his payment. The I-T department has created a TDS directorate with a view to tighten TDS administration with 12 commissionerates across the country having dedicated officers focusing on expanding the TDS network and ensuring greater compliance. All government departments, both at central and state levels, have been asked to take tax deduction account numbers (TAN) and e-file their returns every quarter.