Jaitley asks banks to deposit March TDS by month-end

Worried over the shortfall in the overall direct tax collection kitty, the government has asked banks, both public and private, to not delay remitting of TDS funds of the current month into state coffers and do the same within the current financial year ending in March.

The I-T department and its apex policy making body, the Central Board of Direct Taxes (CBDT), are wary that the growth registered this time under the Tax Deducted at Source (TDS) category is less than half as compared to the corresponding period last fiscal. According to official data updated till March first week, TDS collections stood at 7.49 per cent as against 16.69 per cent in the same period last year. "The situation of tax collection under TDS category remains challenging even at the end of March now. There is a big slowdown in construction, manufacturing and other physical work projects in the country which is taking a toll on TDS and Tax Collection at Source (TCS) categories,” a senoir official said.