TDS information set to become primary tool of taxman to curb tax evasion

According to a senior IT official , ‘the income tax department has decided to intensify its vigil on the non-payment of TDS on interest earnings and non-disclosure of such income in the tax return’. The basic idea behind this step he stated was “to shift towards non-intrusive modes for plugging revenue leakages and enhancing compliance, instead of depending more on scrutiny.”

Though TDS forms over 37 per cent of the total tax collection, it has still till date been enjoying the taxmans’ leniency, but now the department has a plan in place to vigorously focus on TDS payments. Income from several sources like salary, interest, dividend, rents and fees for professional services are subject to TDS, the IT department however to begin with will be focus sing on bank fix deposits. It is in this area they believe that ‘either TDS is not cut at all or is not reported by the assesses even if it has been deducted.’