Lok Sabha Question No. 3183 (UNSTARRED), answered on 2021-03-15
Subject: Tax Deducted at Source
Ministry: FINANCE
Asked by: N.K. Premachandran

## GOVERNMENT OF INDIA MINISTRY OF FINANCE

## DEPARTMENT OF REVENUE LOK SABHA UNSTARRED QUESTION NO 3183 TO BE ANSWERED ON 15 th  MARCH, 2021 PHALGUNA 24, 1942 (SAKA)

## TAX DEDUCTED AT SOURCE

3183. SHRI  N.K. PREMACHANDRAN:

Will the Minister of FINANCE be pleased to state:

- (a)  whether  the  Government  has  established  a  mechanism  to  check  the  date  of deduction of Tax Deducted at Source (TDS) by the banks and date of remittance of TDS to the IT Department and if so, the details thereof;
- (b)  the details of amount remitted by the Federal Bank to the IT Department during the last five years on account of TDS deducted from the account holder;
- (c)  whether the Government has cross-checked the actual date of deduction of TDS and date of TDS by the Federal Bank and if so, the action taken thereon;
- (d)  the details of total amount deducted by the Federal Bank on account of income tax during the last three financial years; and
- (e)  whether it has come to the notice of the Government that the tax deducted by the  banks  are  not  remitted  to  Income  Tax  department  on  time  and  if  so,  the action taken thereon?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI ANURAG SINGH THAKUR)

(a): Yes Sir. Every person, responsible for deducting tax at source, is required to file quarterly  statements  of  TDS in  accordance  with  the  procedure,  formats,  and standards  specified  as  per  the  provisions  of  the  Income-tax  Act,  1961  and  the Income-tax Rules, 1962.The form for furnishing statement of tax deducted, inter alia , captures  the  date  of  deduction  and  date  of  deposit  of  the  tax  deducted.  These statements furnished by the deductors are processed in the manner laid down under sub-section  (1)  of  section  200A  of  the  Income-tax  Act.  Defaults  of  short  payment, interest on short payment, short deduction, interest on short deduction, interest on late  deduction,  interest  on  late  payment  and  late  filing  fee  are  computed  on processing of the statement of tax deducted at source which are furnished by the deductors.

(b),  (c)  &  (d):  Disclosure  of  tax  related  information  about  specific  taxpayers  is governed by the provisions of section 138 of the Income-tax act, 1961.

The  statements  of  tax  deducted  at  source  furnished  are  processed  in  the manner laid down under sub-section (1) of section 200A of the Income-tax Act, 1961 and defaults if any, including non-compliance of timely deduction of tax at source, are  computed.  In  case  any  default  is  detected,  penal  actions  are  taken  as  per provisions of Income-tax Act, 1961.

(e):    The  furnishing  of  statements  of  tax  deducted  at  source  by  the  deductors including banks and processing of these statements under sub-section (1) of section 200A of the Income-tax  Act,  1961  is  a  regular  and  ongoing  process.  Whenever  it comes  to  notice  of  Income  Tax  Department  either  through  verification,  surveys, complaints  or  processing  of  statements  of  tax  deducted  at  source  that  the  tax deducted  is  not  deposited  on  time  by  a  deductor,  as  per  the  provisions  of  the Income-tax Act, 1961 actions which may be in the form of penal interest, penalty or prosecution are taken.

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