Though all India tax collections have gone up from Rs 3,38,212 crore in 2008-09 to Rs 3,78,350 core in 2009-10, the share of TDS (Tax Deduction at Source) has not commensurately increased and has been tapering off to 36.91 per cent from the earlier 38.49 per cent.
The actual TDS collection has touched Rs 1,39,529 crore from Rs 1,30,172 crore, Durgesh Shankar, Member, Central Board of Direct Taxes (CBDT) said while inaugurating the ASSOCHAM Conference on TDS in Bangalore on Friday.
Thee performance of the Bangalore region has not only been in-line with All India performance, but has out-performed other regions, he said.
Shankar said there is a considerable potential for enhanced TDS collection, he said, adding the Government is bringing in a paradigm shift in the functions and working of the IT Department, including e-filing, introduction of Tax Infomation Network and greater interaction with tax payers.
He further said that the number of PAN holders in India is nine crore, assesses three crore, TAN holders 22 lakh and active TAN holders filing returns, only rs 12 lakh.
On the contrary, the quarterly TDS returns annually are by 40 lakh tax payers and the number of deductees with valid PAN 22 crore as against the number of deductee entries in TDS returns to the extent of 25 crore, he said.
Shankar said manual processing of IT Returns is being gradually phased out and e-filing of corporate returns as well as bigger non-corporate entities is mandatory.
It was encouraging to see even non-mandatory category of taxpayers preferring e-filing route. To ensure better tax payer services, Central Processing Centres are being set up at different locations to enable batch processing of IT Returns and thereby give speedy refunds, he said.