Tax Deducted at Source contributes to 40% of the total tax revenue of India

Tax Deducted at Source contributes to 40% of the total tax revenue of  India. This was stated by Smt Balbir Verma, Principal Director General of Income Tax (Admn) & (TPS).

Smt Verma was speaking at the Conference on Tax Deduction at Source: Issues, Problems and Recent Developments,  organised under the aegis of the PHD Chamber of Commerce & Industry (PHDCCI) here today.

She emphasized that the scope of TDS has enhanced over the years and that lately TDS software has been streamlined to solve the problem of the  deductees.

She also shed light on the provisons of Income Tax Act, 1961 and timely payment of TDS. She stated that Filing of TDS statement should be on time. Non- deduction of tax is due to lack of awareness on the part of deductor. Smt. Verma mentioned that Income Tax Department keeps a constant watch on non-filers and non-depositer of TDS. She gave her insight on importance and timely payment of tax, educating deductor about TDS and non-filing of TDS statement.

 Ms. Vatsalaa Jha, CIT-III (Transfer Pricing) in her address mentioned that TDS has made tax payment simple and transparent. The Optimized system allows people to file their Tax statement with ease. She highlighted the legal issues of Sec 234 E of Income Tax Act, 1961and emphasized on the scope of TDS. She also talked on the grievances of tax payers that have increased because of TDS mismatch.

The Conference discussed important issues of TDS and focused on interpretational issues, latest judicial pronouncements as well as procedural and practical issues encountered while filing returns and in assessments under the present system. Various aspects of TDS relating to Residents & Non – Residents were also deliberated in detail at the Conference.

The Conference covered the following:

·        TDS on payments to Contractors, Commission, Rent

·        TDS on FTS, Royalties

·        TDS on Salaries & Interest

·        TDS on payments for immovable property

·        TDS from payments to Non-residents (Section 195 & Section 206 AA)

·        TDS in context of Double Tax Treaties

·        Equalization Levy

·        Recent Notifications, Circulars & Case Laws

·     Issues pertaining to TDS refunds; E-Filling of TDS returns, issuance of TDS                 certificates & Procedural Difficulties

·        Assessee in default, Interest and Penalty;

Sh Anil Khaitan, Vice President, PHDCCI, in his address said that the Government has been trying to plug all loopholes that may be confronting the assesses. He said that several proposals of the Justice Easwar Committee as well as the TARC have been accepted , main being the rationalisation of the TDS provisions for small taxpayers, dispensing with the requirement of PAN registration for foreign companies in availing of concessional withholding tax rate. He added that several recommendations of the Easwar Committee focus on greater transparency and promoting higher accountability in tax administration.