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

New TDS Codes has Doubled Unique Deductees Number in 6 years

In a review meeting with the finance ministry, the Central Board of Direct Taxes (CBDT) said that the introduction of new TDS codes, which have almost doubled from 36 to 65 in eight years, has led to an increase in total reported transactions in FY 2021-22 to 144 crore as compared to the total reported transactions in FY 2015-16 of 70 crores. This has also increased the number of unique deductees. The number of deductees has doubled in six years, increasing from 4.8 crores in FY2015-16 to 9.2 crores in FY2021-22. 

Some of the major agendas of the meeting included the initiatives implemented for increasing the taxpayer base, pending disciplinary proceeding cases, disposal of applications for condonation of delay, and grant of exemptions under certain sections of the Income Tax Act, 1961. 

During the meeting, CBDT also told the Finance Minister that the introduction of new data sources in Statements of Financial Transactions (SFT) like Dividend and Interest; Securities; Mutual Funds, and information from GSTN in recent years, has led to an 1118% increase in reported information. This has resulted in the addition of information of about 3 crore persons. 

Sitharaman also emphasised that CBDT should ensure timely and appropriate actions on all applications filed by taxpayers and desired a reasonable timeframe for the disposal of such applications. The Finance Minister exhorted CBDT to expand and strengthen its efforts to increase taxpayers’ awareness regarding the provisions of direct tax laws and compliance thereof. 

Finance Minister also apprised of the fact that the Personal Income Tax (PIT) to GDP ratio has been steadily increasing from 2.11 in FY2014-15 to 2.94 in FY2021-22.