Objective of TDS is to Track Financial Transactions, Not Just Collect Tax: Income Tax Dept Joint Commissioner

📅 By Admin | September 09, 2024
📂 Categories: Income Tax News
⏳ 4 Min Read

Sanjeev Kumar, Joint Commissioner of the Income Tax Department, emphasized that the primary goal of Tax Deduction at Source (TDS) is to gather information on significant financial transactions of taxpayers, aiding in effective tax administration. The department aims to use TDS as a tool for real-time data collection rather than just tax collection.

Kumar highlighted that non-compliance with TDS provisions, especially in smaller cities, can result in penalties or even prosecution. He advised taxpayers to consult their CA or tax adviser before conducting financial transactions to avoid future issues.

At a seminar organized by the Tax Practitioners Association and the Indore CA branch, Kumar discussed the online dispute resolution scheme (eDRS) for resolving small appeals. The scheme applies to taxpayers with income under ₹50 lakh and disputes up to ₹10 lakh. Applications must be submitted by September 30, and the Dispute Resolution Committee will issue orders within six months.

Additionally, Kumar introduced the Vivaad se Vishwas Yojana 2024 for resolving appeals pending at higher levels, such as the Income Tax Appellate Tribunal and Supreme Court. Taxpayers with disputes over ₹10 lakh can settle by paying the disputed tax by December 31 under this scheme.