Government looks to ease TDS pain

NEW DELHI: The government is looking to ease the problems related to tax deducted at source ( TDS), which are faced by thousands of taxpayers for no fault of theirs.

A lot of taxpayers have complained that often tax is deducted by their vendors or employers but not transferred to the government, resulting in a lot of harassment as refunds can't be processed. While the commissioners have the power to provide relief up to Rs 1 lakh if a certificate of deduction is produced, taxpayers have not been getting much respite when they encounter such problems.

Now, officers have been instructed to use the power so that genuine concerns are addressed. Separately, the government has already asked officers to crack down on those who do not deposit tax after deducting.

Also Read: Everything you need to know about filing tax return

While the problem had been affecting scores of individuals, the Central Board of Direct Taxes (CBDT) had failed to provide any relief. Last week, revenue secretary Hasmukh Adhia is learnt to have instructed CBDT officials to find a solution at the earliest. Sources said some of problems would have to be resolved through tweaking of the software.

TDS is seen as a potent tool to tackle the menace of black money so that transactions can be tracked by authorities.