Issue/Justification

Interest payments by banking sector may be reconciled with the TDS returns of Banks submitted with respect to section 194A of the Income-tax Act, 1961.

For example, as per the balance sheet of SBI on 31.03.2017, it held Rs. 11,13,000 crores of Term deposits from others. It had paid more than Rs.1,05,000 crores of rupees as Interest.

Taking it as a sample study since all the banks are not of the same size, one can estimate interest commitment paid in this country from all the banks and NBFCS exceed Rs.10 Lakhs crores. It means TDS on interest alone shall not be less than Rs. 1,00,000 crore.

Suggestion

It is suggested that such exercise of reconciliation be undertaken by the Income tax department to identify major defaults in respect of TDS on interest other than interest on securities.

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

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Tags : Budget (1952) Budget 2018 (395) ICAI (2540)

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