Awareness programme on TDS, TCS conducted
Ten per cent of nearly 26.43 lakh income tax assessees in Tamil Nadu do not file their Income Tax returns, according to S. Sendamarai Kannan, Chief Commissioner of Income Tax (CCIT), Chennai.
He was talking to newspersons on the sidelines of an awareness programme on TDS (Tax Deducted at Source) and TCS (Tax Collection at Source) organised jointly by the Income Tax (IT) Department and the Vellore Branch of the Southern India Regional Council (SIRC) of the Institute of Chartered Accountants of India (ICAI) here on Friday.
Mr. Sendamarai Kannan said the IT Department has been organising awareness programmes in all major centres in Tamil Nadu to educate the drawing and disbursement officers (DDOs) of various State government departments and tax-paying public on the need to file IT returns in time so that they could get the benefit of IT refund. While the Income Tax of all salaried employees in the government sector is collected through TDS, IT returns of most of these employees were not filed, as a result of which these employees do not get the benefit of IT refund for which they are eligible.
One lakh returns have been filed in the Vellore region comprising Vellore, Tiruvannamalai and part of Tiruvallur districts this year.
Mr. Sendamarai Kannan said that as against an IT collection target of Rs.38,816 crore in Tamil Nadu in 2011-12, a sum of Rs.16,278 crore has been collected so far.
A sum of Rs.32,392 crore was collected in the State last year. IT to the tune of Rs.148.72 crore was collected from the Vellore region last year, while a target of Rs.186 crore has been fixed for the current financial year. Fifty per cent of the IT is collected through payment of advance tax, 40 per cent through TDS and the remaining 10 per cent through self-assessment tax, he said.
Speaking at the awareness programme, Mr. Sendamarai Kannan said that while the DDOs collect the tax of the staff in their departments through TDS and remit the collections to the IT account in banks, they do not file e-returns. As a result of this, the IT account of tax-payers did not reflect the IT payment. This led to problems to the tax-payers, who complain to the IT Department of non-issue of refunds. Tax collection is not necessarily the job of the IT Department alone, but the DDOs in the State government too should share the responsibility of collecting tax.
They should file e-returns so that the employees get the benefit of IT refund. The persons who file-e-returns should be tech-savvy, he said.
Mr. Sendamarai Kannan said that funds required for development projects undertaken by the Central and State governments could be obtained only by increasing tax collections. An IT collection target of Rs.5,35,000 crore has been fixed for the whole country for 2011-12, he said.
S. Nagarajan, Collector of Vellore, urged the DDOs to follow up on TDS collection of IT by filing e-returns. Acknowledging that there was a knowledge gap and technology gap which prevented the DDOs from filing e-returns of the employees, he wanted the departments which have a large number of employees such as the Education Department, those such as the PWD and highways which make third party payments to contractors and departments with less staff to devise their own strategies to ensure prompt IT collection through TDS and prompt filing of e-returns. He requested the IT Department to create a cell in the Collectorate to educate the staff on e-filing of IT returns.
E. Sankaran, Commissioner of Income Tax (TDS), Chennai, urged the DDOs to remit IT collections in the relevant account before the stipulated date to avoid unnecessary issue of demand notices to the assessees.
Sailendra Mamidi, CIT-VIII, Chennai, said refund to the tune of Rs.33 crore were issued to the assessees in the Vellore region this year, as against Rs.16 crore last year. He said the department was forced to issue demand notices to the assessees instead of refund because of the failure of the DDOs to file e-returns. This should be avoided, he said.
Mohan, president, Vellore branch of SIRC of the ICAI, and Kalaiazhagan, secretary of the branch, spoke.