The Income Tax Department will now mail to individual assessees the details of the tax deducted at source (TDS) on their Income from different sources like banks, employers or post offices.Officials said the move is aimed at preventing any discrepancy between the TDS actually deducted and the TDS received by the tax department.

A circular to this effect has been sent by the Central Board of Direct Taxes (CBDT) to all offices across India.According to official sources, complaints were received by the department that TDS was being collected arbitrarily by the payers.While submitting the returns, it is not possible to scrutinise the TDS rate and amount collected at the collection centre.

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Around 40-45 per cent of the total revenue of the government comes through TDS.

Another reason for this decision is that refunds from the department have also gone up. Sources said it should not affect the assessee who may be paying a high rate of TDS and is not compensated even after the employer or broking firm or any other organisation gets a refund on higher rate of TDS which may not be applicable to such income.

TDS is one of the ways of collecting tax from the taxpayers in India, directly at the source at which the income arises or generates. Some of the items which attract TDS are salary, interest, rental fee, interest on securities, insurance commission, dividends from shares and mutual funds, commission and brokerage, prize money won from lotteries, horse races, payments to non-resident sportsmen or sports associations, commission on sale of lottery tickets, fees for professional and technical services and the like, compensation for compulsory acquisition, income from units of an offshore fund and income from foreign currency bonds or shares of Indian companies (unless specified as tax-free).

There are numerous rates of TDS applicable to various classes of taxpayers, which has made TDS calculation cumbersome. In order to make TDS calculation easier, the CBDT in its Budget recommendations last year, had proposed a uniform rate of TDS for all tax payments.

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0 responses to “Income Tax Department will mail to individual assessees details of TDS”

  1. Ketan says:

    I praposed tax code exemption on housing interest is withdrawn. this is not fair. when loan is taken for 15 years with knowldege that interest will be allowed as tax deduction, suddenly withdrawal will affect fund flow of comman man. Govt can re-introduce interest on housing loan with same limit under new section 66 of the code. It should be allowed in over all limit of Rs 3 lacs. by doing this comman man will not be affected specially salaried class persons

  2. Umesh kumar Singh says:

    Suggestion under new tax code : Sir, Imposing taxes on retirement benefits under new tax code are not advisable.It will be extra burden on the employees.In many organisations, no any type of pension scheme/no new pension are available for the future of the employees.I,therefore, request Income Tax Department for not imposing any type of taxes on retirement benefits and PPF account because these benefits helps pensionless employees. I, also suggest Income Tax Department for reducing age of Senior Citizen from 65 years to 60 years for getting financial benefits on their savings. If my suggestion will be accepted certainly this will help employees and Senior Citizen.
    Thanking Income taxDepartment.

  3. venkat says:

    The TDS 16A forms are received only at least one month after 31 march from the TDS collectors. This is ok for salaried employees where the employer collects TDS periodically and can adjust final tax liability of the employee. This is most cumbersome for pensioners and senior citizens who assess their own income tax liability and prepare their own returns. They are obliged to pay the final installment of tax Before 15 March, long before he or she is aware of the TDS deduction. How can she adjust her liability without any overpayment of tax.

    It is therefore requested that you , TAXGURU, send a suggestion to the Finance Minster that
    “the TDS need not be collected by the banks either for their pension or for the fixed deposits etc for senior citizens.”

    This will enable the senior citizens to correctly assess their income tax liability and pay it before 15 march. This suggestion may be sent to the FM so that it can be either included in the forthcoming budget or in administrative orders.

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