Income Tax Dept monitors 40,000 taxpayers check if you’re on the list!

TDS Notice To Tax Payer: The Income Tax Department monitors individuals and companies that have deducted TDS but have not deposited it with the department. The department has sent notices to around 40,000 individuals who have done this.

Income Tax Notice: The Income Tax Department maintains constant vigilance. The department has initiated a campaign concerning TDS and TCS irregularities. The department intends to act against individuals and businesses nationwide who have failed to remit TDS and TCS to the government after making deductions. As per the authorities, investigations of roughly 40,000 such taxpayers are ongoing. Their tax deduction record for the fiscal years 2022-23 and 2023-24 is being questioned. The department is issuing notices to these taxpayers.

A plan consisting of 16 points was prepared

A 16-point plan has been devised by the Central Board of Direct Taxes (CBDT) to pinpoint individuals who engage in TDS fraud. Additionally, the data analytics team has compiled a list of these taxpayers, which will serve as the basis for their investigation. In a conversation with ET, a high-ranking official stated that the department possesses comprehensive data. Such taxpayers will be reached out to by initially providing them with information, allowing them the opportunity to make the tax deposit.

Which types of cases will be monitored?

The inquiry will be aimed at individuals who do not succeed in making TDS deposits on multiple occasions, as stated by the authorities. In addition to this, the investigation also encompasses individuals whose tax deductions and advance tax payments differ significantly. Also being investigated are companies that have undergone multiple name changes. Businesses that utilize units that are incurring losses.

Severe measures against those failing to deposit TDS

According to Section 40(a)(IA) of the Income Tax Act, if an individual deducts TDS but fails to deposit it with the government, they will face stringent consequences. Departmental officers have been directed to furnish details about instances where a substantial sum has been excluded from tax exemption. In addition to this, the department will monitor closely cases involving multiple revisions of TDS returns and efforts to minimize the appearance of the default amount.

Tracking tax evasion via data analytics

It has been mandated that officers treat complaints with gravity and evaluate individuals guilty of tax evasion using data analysis. Taxpayers will be guaranteed by the Income Tax Department to not encounter any issues. However, those who intentionally engage in fraudulent behavior will face severe consequences.

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