TDS/TCS Compliance : The Income Tax Department is gearing up for a largest campaign across the country. Under this, it will take action against those persons and companies who have not deducted TDS or TCS or have not deposited it for the government. As per the officials, nearly 40 thousand taxpayers are under investigation. The investigation will be based on the tax data of the financial year 2022-23 and 2023-24.
16 Point Plan For Catching TDS Defaulters
CBDT (Central Board of Direct Taxes) has made a 16 point plan for catching TDS defaulters. The entire data analytics team prepared a full list of taxpayers who never paid tax.
“We have full data. Those who have not deposited the tax will be sent a notice first,” said a senior official. It has also been said that special attention will be kept on those who repeatedly break the rules.
Which Cases Will Be Investigated?
- Inquiry will be initiated, if the difference between TDS deduction and advance tax payment highly differs.
- Cases where frequent changes and corrections in name have occurred will be investigated.
- Companies using loss-making companies in audit will also come within the realm of investigation.
- Those reducing the amount of default by changing TDS return several times will also be kept track of.
Strict Action Would Be Taken Under Section 40(a)(ia)
CBDT issues a memorandum to all income tax offices reporting excessive defaults under section 40(a)(ia) of the income tax act, regarding that “tax deduction is not allowed in cases when TDS is not deducted or deposited to the government”.
Irregularities Will Be Caught Through Data Analytics
Field officers now have to use data analytics for understanding TDS payment irregularities and patterns. In addition, complaints made by taxpayers will also be taken care of.
Honest Taxpayers Would Not Face Any Problems.
The official said that the aim of this campaign is not to harass anyone. It is only against those who are deliberately evading taxes by not reporting to the government. The government has made it very simple for honest taxpayers by simplifying both TDS and TCS rates in this year’s budget.
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