CHENNAI, JAN 12
Tax Collection at Source (TDS) has shown a growth rate of 27% at Rs 37,267 Crore during the current financial year in Tamil Nadu & Puducherry Region, said Principal Chief Commissioner of Income Tax R Ramachandran here on Thursday.
Addressing the media conference, Ramachandran said, “Tamil Nadu & Puducherry Region is one of the most urbanized states in the country. As the tax collection directed related to GDP of the state, the region had a modest direct tax collection of Rs. 1,108 Crores in the F.Y. 1991-92. We clocked a gross collection of Rs. 1,01,499 Crores in the last F.Y. (2021-22) for the first time; and had a net collection of Rs. 90,108 Crores. There is a growth of 27.23% in gross collection observed this year. Tamil Nadu & Puducherry Region has been the 4th largest contributor of exchequer for the last more than 10 years.”
- Tamil Nadu & Puducherry Region has been the 4th largest contributor of exchequer for the last more than 10 years
- The Income Tax Department (TN&P), Chennai has obtained seven convictions in the financial year 2022-23 (up to December 26, 2022)
- As a result of the convictions carried out during the FY 2022-23 (up to December 2022) nine persons have been sentenced to imprisonment for periods ranging from a minimum of 3 months to a maximum of 2 years
“Budget target allocated for Tamil Nadu & Puducherry Region for the FY 2022-23 is Rs. 1,08,200 Crores. This is 33% more compared to the last year budget target of Rs. 81,000 Crores. In terms of percentage growth compared to last year collection, TN&P Region stands at 4th position. The net collection till date is Rs. 80,480 Crores. Compared to the last year net collection of Rs. 64,102 Crores (YTD), there is a growth of 25.5% in net collection observed this year. The net collection for the financial year 2021-22 was Rs. 90,180 Crores. Out of this, TDS collection was Rs. 47,977 Crores (53%). The current year TDS collection till date is Rs. 47,313 Crores which shows a growth rate of 27% (PY-YTD- Rs. 37,267).
Faceless scrutiny
Replying to a query on Faceless Scrutiny which was kick-started two years ago, Ramachandran said that the department has achieved a phenomenal growth and language issues arising between the assessing official sitting at the remote corner of the country and the assessee are sorted through the dedicated technical team.
When asked about releasing the DA freezed for 18 months during the pandemic for the Income Tax officials and employees, he said the decision on this lies with the government.
Pay as You Earn is TDS
Tax Deducted at Source (TDS) is akin to “Pay as You Earn” which provides regular inflow of revenue to the Government exchequer. It is a smooth and efficient way of collecting taxes. It also creates an audit trail for those who have taxable income.
Presently, TDS contributes 50% of total tax collections on All India basis. In Tamilnadu & Puducherry region, the TDS charges at Chennai and Coimbatore have contributed to 54% of the total Net Tax collections during the FY 2021-22. For the FY 2022-23 (up to 31.12.2022), TDS/TCS collections made are to the extent of Rs. 38,817 Crores and are growing at an impressive rate of 41% compared to last year.
193 outreach/Corporate connect programmes
Considering the importance of TDS as a mode of collection of taxes it is imperative that the various provisions and rules have to be properly complied with. In this regard, department conducts various programs in the form of Outreach and Corporate Connect Programs to spread the awareness about TDS/TCS provisions and compliance with the same.
A total of 193 programs have been organised across various regions of Tamilnadu and Puducherry since September 2021 covering various sectors such as Commercial Banks, Co-operative Banks, Manufacturers, Real estate, Software industry, Pharmaceutical industry, Nidhi Company and Government deductors.
Rs 245.89 Cr TDS defaults detected through 124 surveys
In order to check the TDS compliances, the department also carries out e-verifications and Survey actions u/s. 133A(2A) of the Income Tax Act, 1961. For the FY 2021-22 and 2022-23, a total of 124 surveys have been carried out covering different sectors like Co-operative Banks, Manufacturers, Real estate, Software industry, Media, Logistics and Government deductors which have resulted in detection of TDS defaults of Non-remittance/Non-deduction to the tune of Rs. 245.89 Crore.
If Tax is not deducted/collected within the specified due date, interest @ 12% p.a. is leviable and will also attract Penalty of an amount equal to the TDS/TCS failed to be deducted/collected. In cases of Non-remittance of TDS/TCS, interest @18% p.a. is payable and the deductor would also be liable for Prosecution u/s. 276B/276BB of the Income Tax Act, 1961 attracting punishment of imprisonment from 3 months to 7 years along with fine. The department has identified large number of cases where such offences of serious TDS violations were noticed and Prosecution proceedings have been initiated. The Income Tax Act also provides for a scheme of compounding of offences subject to satisfaction of certain conditions.
TN & P Region obtained 7 convictions for tax evasion
Ramachandan said, the Income Tax Department (TN&P), Chennai has obtained seven convictions in the financial year 2022-23 (up to December 26 2022) on the prosecution proceedings initiated by it against the tax defaulters in respect of the various offences committed under the Income Tax Act, 1961.
The subject matter of conviction ranges from – failure to file ITR, evasion of income chargeable to tax, false declaration in the ITR filed, to failure to pay the outstanding tax arrears. As a result of the convictions carried out during the FY 2022-23 (up to December 2022) nine persons have been sentenced to imprisonment for periods ranging from a minimum of 3 months to a maximum of 2 years apart from the total fine levied of Rs.9,70,000, the Pr CIT of TN & P added.
M Rathinasamy, Chief Commissioner of Income Tax (TDS), Chennai and other senior Officers were present at the media conference.
