Time limit for TDS assessments of payments made to non-residents

Issue/Justification

Presently, there is no time limit specified by the Act for initiating & completion of TDS proceedings under section 201 of the Act in respect of payments made to nonresidents. Thus, the TDS returns are scrutinized by the assessing officers for past years without any limit, which has resulted into enormous difficulty for the assessee as it becomes practically difficult to store & retrieve data beyond four years of filing of TDS returns.

Suggestion

It is suggested to fix a specific time limit for initiating & completing TDS proceedings under section 201 of the Act in respect of payments made to non residents which should not be more than 4 years from the relevant financial year.

Source-  ICAI Pre-Budget Memorandum–2018 (Direct Taxes and International Tax)

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Category : Income Tax (27491)
Type : News (13628)
Tags : Budget (1956) Budget 2018 (399) ICAI (2600)

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