New TDS Regime – CBDT gives up – postpones indefinitely
THE CBDT had come up with an ambitious, complex and impossible TDS regime which was to be effective from 1st April 2009. Like putting the cart before the horse, the law was put in place without the machinery. On 11th May, 2009, they announced that the new regime will come into force from 1st July instead of 1st April. Now today is 1st July and nothing has happened in the last couple of months to improve the situation. Yesterday they realised that it cannot be implemented from today. With the complicated and impossible procedure, TDS collections must have also come down.
Better sense prevailed at the last moment and the Board announced that the scheme is kept in abeyance for the time being. The next date will be notified by the Board soon.
For details of the Scheme, please see DDT 1117 - 25.05.2009
Also see
New TDS Regime - A grand fiasco for CBDT; Is outgoing FM 'aware' of policy change, richly contributing to 'Tax Misery Index'
New TDS Regime - A tale of goof-ups; TPL, TRU need to develop grip over taxpayers' pulse for improved compliance
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