The survey by the Tax Deducted at Source (TDS) wing of the Income Tax (I-T) department was a routine practice as a measure to ensure compliance, clarified South Indian Bank and ESAF on Wednesday. The survey was conducted at the two banks on Tuesday.
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“The department has not made any allegation against the bank on flouting TDS norms. The statement that branches issue deposits without proper documents is not right since all documents pertaining to TDS exemptions, with respect to deposits, are centralised and done by a separate team ensuring due diligence and compliance. Moreover, system checks also exist to ensure compliance in this regard,” said a statement from South Indian Bank.
“We have been following high standards of compliance since our inception and fully cooperated with the survey team by providing the relevant information and documents. We are collecting relevant documents from customers and there are no irregularities. As part of the survey, we are advised to furnish certain additional data and information pertaining to earlier years, which are being collated,” said a statement from the ESAF.
According to the I-T sources, the survey has been completed. “We are examining whether there are any defaults. In case of any discrepancy, the banks will be issued a Tax Demand Notice,” said top IT sources, adding that the survey will be continued in other banks too in the coming days.