The Central Board of Direct Taxes (CBDT) has incorporated in its Central Action Plan for 2017-18 comprehensive procedures to meticulously deduct TDS (tax deducted at source) from State government PSUs, corporations, autonomous bodies, and development authorities. Therefore, it has asked for greater sensitisation and education of banks.
The contribution of TDS to the overall gross direct taxes collections in FY17 was about 37 per cent of the total collected direct taxes of Rs8.48 lakh crore.
CBDT has come across a large number of instances where the deductors make ‘PAN’ errors — either no PAN is quoted in the TDS statement against the deductee row, or an invalid number is quoted. Therefore, IT officers responsible for TDS collection could ask the deductors to insist on a valid PAN in case of high-value transactions.