Lok Sabha Question No. 2149 (UNSTARRED), answered on 2017-07-28
Subject: TDS Losses
Ministry: FINANCE
Asked by: A. ARUNMOZHITHEVAN

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE ***

## LOK SABHA

## UNSTARRED QUESTION No. 2149

## TO BE ANSWERED ON FRIDAY, THE 28 TH  JULY, 2017

## SHRAVANA 6, 1939(SAKA)

## TDS LOSSES

## 2149. Shri A. ARUNMOZHITHEVAN

Will the Minister of FINANCE be pleased to state:

- (a) whether the Government has incurred a revenue loss of almost Rs. 3000 crore either due to Tax Deducted at Sources (TDS) not being collected or being  collected  and  not  being  deposited  by  the  assessee  during  the
- financial years 2013 to 2015 and if so, the details thereof;
- (b) whether the Government is aware that in many cases during the said
- period the assessing officers failed to impose interest on defaulting tax deductors  for  failure  to  deduct  TDS  or  deducting  less  TDS  under  the relevant sections of the Income Tax Act and if so the details thereof; and
- (c) the corrective steps taken by the Government in this regard?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF FINANCE

## (SHRI SANTOSH KUMAR GANGWAR)

- (a) Madam, the CAG in it's Report no. 4 of 2017 relating to 'Implementation of TDS/TCS    Schemes' has indicated a tax effect of Rs.2,952.27 crores in 1481 cases, out of mistakes pointed out relating to audit  conducted  by  them  relating  to  Income-tax  returns  filed  and processed/ completed during the Fin. Years 2012-13 to 2014-15. These mistakes were relating to various TDS/TCS provisions in the Income Tax Act, 1961. The department has taken remedial action in all such cases where the objection has been accepted & hence the interest of revenue
- has been protected.

- (b) Yes. Madam, there are 97 cases mentioned by the CAG where Assessing Officers  have  charged  less/no  interest,  involving  revenue  effect  of Rs.902.15 crores. Remedial action has  been taken in all such cases to protect the interest of revenue.
- (c) Madam, in all cases where the objection of CAG is accepted, corrective steps have been taken by imposing interest, penalty, and realisation of TDS.

********

## LOK SABHA

## UNSTARRED QUESTION No. 2149

## TO BE ANSWERED ON FRIDAY, THE 28 TH  JULY, 2017

## SHRAVANA 6, 1939(SAKA)

## TDS LOSSESS

## 2149. Shri A. ARUNMOZNITHEVAN

## Will the Minister of  FINANCE be pleased to state:

## Question

- (a) whether the Government has incurred a revenue loss of almost Rs. 3000 crore either due to Tax Deducted at Sources (TDS) not being collected or being collected and not being deposited by the assessee during the financial years 2013 to 2015 and if so, the details thereof;
- (b) whether the Government is aware that in many cases during the said period the assessing officers failed to impose interest on defaulting tax deductors for failure to deduct TDS or deducting less TDS under the relevant sections of the Income Tax Act and if so the details thereof; and
- (c) the corrective steps taken by the Government in this regard?

## Reply

- (a) Madam, the CAG in it's Report no. 4 of 2017 relating to 'Implementation of TDS/TCS  Schemes'  has  indicated  a  tax effect  of  Rs.2,952.27  crores  in  1481 cases, out of mistakes pointed out relating  to  audit  conducted  by  them relating to Income-tax returns filed and processed/  completed  during  the  Fin. Years 2012-13 to 2014-15. These mistakes were relating to various TDS/TCS  provisions  in  the  Income  Tax Act,  1961.  The  department  has  taken remedial action in all such cases where the objection  has  been  accepted  & hence the interest of revenue has been protected.
- (b)  Yes.  Madam,  there  are  97  cases mentioned by the CAG where Assessing Officers  have  charged  less/no  interest, involving  revenue  effect  of  Rs.902.15 crores. Remedial action has been taken in all such cases to protect the interest of revenue.
- (c) Madam,  in  all cases where  the objection of CAG is accepted, corrective steps  have  been  taken  by  imposing interest, penalty, and realisation of TDS.