Measures to enhance revenue collections through TDS

GOVERNMENT OF INDIA
Ministry of Finance/Department of Revenue
Central Board of Direct Taxes
North Block, New Delhi-110001
E-mail : chairmancbdt@nic.in
Tele : 23092648 & Telefax : 23092544

F. No. 370/02/2017-IT (B)

Dated the 13th September, 2017

Dear Principal Chief Commissioner of Income-tax

Subject: Measures for enhancing revenue collections through Tax Deduction at Source.

On review of the progress of TDS collections it is noted that as on 31.08.2017, an amount of Rs. 1,65,114 crore has been collected under TDS (Minor Head) at a growth rate of 10.44% over corresponding period of last financial year. It has shown a significant decline of 7 percent over the last financial year when the growth rate at this time was 17.44%. A region-wise status of TDS collection as on 31.08.2017 is enclosed. It is disappointing to note that the TDS growth rate in some regions is in the negative and in single digit in many regions.

2. In view of above, there is an urgent need to step up efforts for augmenting TDS collections. A few indicative steps in this regard are conducting more TDS surveys to check large scale non-deduction or under deduction of taxes at source as well as non-deposit of taxes already deducted. All cases, where the TDS payment by the deductors in the current year is more than 10% lower than the payments in the corresponding period of last year may be examined on priority for possible spot verification or survey based on the compliance background of the deductors. An equally useful step would be monitoring compliance of newly introduced provisions under Finance Act 2017 such as sections 194IB and 194IC.

3. The list of TDS defaulters is available with CPC-TDS. Some defaulters may be physically verified for immediate collection of TDS which has been deducted but not deposited to Government account so far. Criminal complaints u/s 276B and 276BB need to be expeditiously filed before Courts in liable cases. The compounding petitions for offences u/s 276B and 276BB constitute Category ‘A’ offences and so do not need meeting of Regional Compounding Committee (RCC). Such compounding petitions must be expeditiously disposed of by the CCIT.

4. It also appears that the tax deducted by the State Government DDOs is not transferred to the account of the Central Government within the prescribed time and there are inordinate delays in this regard. The CCIT (TDS)/ CIT (TDS) should ensure that there is proper deduction and timely deposit of tax at source by the Central Government offices and the State Government offices also.

5. You are requested to send action taken report with data in all areas to me by 10.10.2017 under intimation to the Zonal Member.

with Best Wishes.

Your Sincerely

(Sushil Chandra)

Enclosure: As above

All the Principal Chief Commissioners of Income-tax.

CC : All the Chief Commissioners of Income Tax (TDS) and Chief Commissioners of Income-tax (International Taxation).

TABLE : ZONE WISE TDS COLLECTION AS ON 31/08/2017 [FY 2017-18]