• Notification Date: 27-04-2023
• Notification No: N/A

FM Discusses Taxpayer Base, New TDS Codes in CBDT Review Meeting

Introduction of new data sources in Statement of Financial Transactions (SFT) like dividend, interest, securities, mutual funds and information from GSTN in recent years has led to 1118 per cent increase in reported information and resulted in addition of information of about 3 crore persons, the Finance Ministry said in a statement after Finance Minister Nirmala Sitharaman chaired a review meeting with Central Board of Direct Taxes (CBDT) on Tuesday. 

Sitharaman emphasised that CBDT should ensure timely action on all applications filed by taxpayers and that a reasonable time frame should be set for disposal of such applications. 

She also exhorted CBDT to expand and strengthen its efforts to increase taxpayers’ awareness regarding the provisions of the direct tax laws and their compliance, the statement said. 

The review meeting mainly focussed on efforts for increasing taxpayer base, pending disciplinary proceeding cases and disposal of applications for condonation of delay and grant of exemptions under certain sections of the Income Tax Act, 1961. 

In the meeting, it was also stated that introduction of new TDS codes, which have almost doubled from 36 to 65 in the last eight years, led to an increase in total reported transactions in 2021-22 to 144 crores as compared to 70 crore reported transactions in 2015-16. 

“This has resulted in an increase in the number of unique deductees – almost doubled from 4.8 crore in 2015-16 to 9.2 crore in 2021-22,” the statement said. Apart from CBDT chairman and members, revenue secretary was also present in the meeting. 

It was also discussed that the Personal Income Tax (PIT) to GDP ratio has increased from 2.11 in 2014-15 to 2.94 in 2021-22. The Finance Minister also reviewed the pending disciplinary proceeding cases against employees and officers and observed that administrative and procedural delays should be minimised.