State govt entities falter in filing I-T returns: CBDT
The Central Board of Direct Taxes has told its zonal heads to ensure that banks do not default on deducting tax at source from these entities
State government entities and local bodies are failing to file income tax returns on time, says the Central Board of Direct Taxes (CBDT).
The board has told its zonal heads to ensure that banks do not default on deducting tax at source from these entities, a media report said.
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“State PSUs, local bodies are not exempted from filing of income tax returns, but many are not filing returns on time or not filling at all," Economic Times quoted an official as saying.
Non-deduction of tax at source
According to the official, there were instances of defaults on payment of advance tax by many state public sector undertakings. The official did not name any of the entities.
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The CBDT had also detected non-deduction of tax at source on interest income earned by state PSUs.
Some of these PSUs, authorities and local bodies were also not deducting TDS on payments to their vendors or contractors as mandated by law.
Widespread non-compliance
According to the official, this non-compliance was widespread and not state-specific.
The board has asked field formations to reach out to state Accountant Generals and collect information on all major contracts and sub-contracts given by various departments and monitor their TDS payments.
The CBDT has also instructed its zonal heads to convene monthly meetings with banks and state Accountant Generals to ensure compliance with TDS provisions.
