The Department of Income Tax (TDS),Pune region,set up in 2007 to oversee Tax Deducted at Source (TDS) collections,has declared that Pune tops in number of tax defaulters. The department has declared that tax defaulters are yet to deposit Rs 435 crore worth TDS for 2008-09.
At a recent press meet,Pradeep Sharma,Commissioner of Income Tax,TDS,said that around 90 surveys conducted till February 15 have revealed that assessors have either paid less TDS or not paid TDS for this fiscal. Notices have been issued to 15 cases, he said.
Pune region has collected Rs 5,031 crore by way of TDS as on February 12 this year as against Rs 5,227 crore in 2007-08.
The growth in the collection of TDS has not been good. It has come to the notice of the department that some assessers are deducting TDS but not depositing it with the government. TDS growth has slowed down to 11 per cent as against 30 per cent last year, Sharma said.
TDS is collected from 22 districts in Pune region including Thane,Nashik,Marathwada,some parts of western Maharashtra and Khandesh. Nearly 40 per cent of I-T collections come from TDS. Non-deduction of TDS is punishable with maximum 7 years imprisonment,Sharma added.
The department has launched a massive drive to recover TDS from defaulters and has managed to collect around Rs 7 crore from 54 odd surveys undertaken till January 31,2009, L. Ramji Rao,Additional Commissioner of Income Tax (CIT),TDS said.
On of the major defaulters are corporate hospitals which show non-deduction/ short deduction of TDS from payments to doctors,non-collection of TCS (tax collected at source) on sale of scrap or non-deduction of TDS on cashless insurance payments made through third party arbitrators. Notices have been issued to 30 hospitals and nursing homes for short-deducting TDS at 10 per cent instead of 30 per cent.
The department has strengthened its machinery to monitor payment of TDS and the top 600 cases are being monitored by way of questionnaires and emails. These questionnaires have gone out to builders,hospitals,educational institutions and BPOs,Sharma added.
It appears that the ambit of TDS has not been properly understood by tax payers like cooperative housing societies,trusts and educational institutes are all required to deduct TDS on various payments on contracts to security agencies,lift maintenance charges,professional services,rentals and brokerage.
Bajaj Allianz was the highest TDS payer last year having paid Rs 200 crore followed by Tata Motors. The manufacturing sector accounted for 33 per cent of TDS payments followed by the software sector at 19 per cent.