40,000 Taxpayers Under Income Tax Department’s Radar for TDS/TCS Defaults
The Income Tax Department has launched a stringent crackdown on 40,000 taxpayers who failed to comply with Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) regulations during the financial years 2022-23 and 2023-24. This move aims to curb tax evasion and ensure stricter compliance with tax laws.
Advanced Analytics to Track TDS/TCS Defaulters
With the help of data analytics and AI-driven monitoring, the department is identifying habitual offenders and taxpayers showing significant discrepancies between tax deductions and advance tax payments. Authorities have uncovered various irregularities, including:
Frequent revisions of TDS returns with substantial reductions in default amounts.
Changes in deductee names to manipulate audits.
Utilization of loss-making subsidiaries to evade tax liabilities.
16-Point Action Plan to Curb TDS/TCS Non-Compliance
The Central Board of Direct Taxes (CBDT) has rolled out a 16-point strategy to track down TDS/TCS defaulters. Field officers have been directed to closely monitor cases where taxpayers revise TDS returns multiple times to minimize tax liability.
A senior CBDT official clarified:
“While compliance measures have been simplified for honest taxpayers, strict action will be taken against willful defaulters to ensure a fair and transparent tax system.”
Revised TDS/TCS Rates & Compliance Relaxations
To streamline compliance, the government has rationalized TDS/TCS rates, reducing the number of slabs and lowering the deduction thresholds. This aims to strike a balance between:
Easing compliance for genuine taxpayers
Enforcing stricter penalties for deliberate defaulters
How This Crackdown Impacts You?
If you fail to deposit deducted TDS, you may face penalties and interest charges.
If your TDS returns show discrepancies, expect scrutiny from the IT department.
Repeat defaulters could be subject to legal proceedings.
Final Words: Stay Compliant & Avoid Penalties
With tax authorities tightening their grip on non-compliance, taxpayers must review their TDS/TCS filings carefully and ensure timely deposits. Businesses and individuals alike should adopt proper tax planning to avoid hefty penalties and unnecessary legal complications.
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