INSTRUCTION NO. 8/2010 [F.NO. 275/73/2009-IT(B)]
DATED 8-12-2010
In the present system of processing of e-TDS returns, the returns are processed online and mismatch report showing defaults on various accounts is generated. Based on this mismatch report, the assessing officers issue show-cause notices to the deductors and take follow up actions.
2. It has come to the notice of the Board that substantial number of TDS returns are pending where the deductee-wise default on account of short deduction of tax is less than Rs. 10.
3. This issue has been considered by the Board and it has been decided that:
(i) where the default on account of short deduction is less than Rs. 10 for each deductee, the demand is round off to zero; and
(ii) after considering (i) above, deductor-wise demand/default, if any, of Rs. 100 or less will also be ignored for further action.
4. However, the DDOs in such cases may be warned to be careful in future so as to ensure that they do not become habitual in short deduction of tax.
5. Earlier Instruction No. 11/2007, dated 18-12-2007 issued under F. No. 385/56/2007-IT(B) on the subject stands superseded by this instruction.
6. These instructions shall apply to all TCS/TDS cases under all Direct Tax Enactments. These instructions will come into force immediately.
7. Hindi version will follow.
F.No.275/73/2009-IT(B)
(Ajay Kumar)
Director (Budget)
Please forward this to Finance Minister and CBDT Sir, Please address the bigger problems hapless deductees are facing in the hands of deductors/IT Dept. 1)deductor deducts, but does not deposit 2)deductor deposits much after deductee files return,may be with appropriate fine(deductee’s due date is 31 july, and deductor’s due date is 31 oct ) 3)deductor does not give tds certificate 4) Repeated requests to deductor to remedy Unmatched TDS amounts in form 26as, go unanswered. Just have a look at TDS amounts remaining Unmatched even after two years and you will understand the gravity of situation and the agony of deductees. On top of this,please examine the propriety aspect of large amounts of Unmatched TDS amounts rightlly belonging to deductees. If they are being utilised by Govt, they must atleast pay the deductee interest on it as it amounts to its using money that belongs to deductees without their approval. If it is lying idle,it is a criminal loss to the nation particularly at a time when the Govt is facing cash crunch. Either way,it amounts to mismanagement of money. It is time that this is examined in a responsible manner to avoid yet another scam . Kindly see this whole thing in the Spirit of Citizens Chrter.’