To address the issues related to Income Tax (IT) department, around 6-7 Industry Chambers were congregating at Aayakar Bhavan in Mumbai on Tuesday.
There have been widespread concerns after the IT department's Mumbai TDS office has issued prosecution notices in 50 "big" cases in the past one month where TDS (tax deducted source) has been deducted but not deposited with the government.
What the industry’s contention is that this is not necessarily mala fide intent, it could be an operational delay then why are they not being given a chance to explain themselves and why is this fear psychosis being created.
In the last one month, only in 50 big cases prosecution notices have been issued by Mumbai IT TDS office. Out of these, in 80 percent of the cases the TDS tax default is above Rs 10 lakh and in 10 percent cases, TDS default is between Rs 5 lakh and Rs 10 lakh.
The Central Board of Direct Taxes (CBDT) has directed the taxman to withdraw all appeal cases, pertaining to certain monetary limits and parameters, from various courts by this month-end as part of the government's drive to end frivolous litigations.