Govt Worried At Tax Not Being Deducted At Source- March 26, 2009

There remains a concern for the government as the employers are not deducting tax at source has resulted in a loss of more than Rs 1,000 crore to the exchequer. In the past few months, the Income-Tax Department has written to more than 1,000 employers on complying with rules on tax deducted at source (TDS) as well as the 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, told Saroj Bala, CBDT Member (Revenue).

However, the department has also given Commissioners as well as other officials at field formations CDs on TDS returns for streamlining the tax accrued under this head.