TIN to eliminate TDS frauds
The Union Cabinet has approved setting up of Phase-II of Tax Information Network (TIN) at an estimated expenditure of Rs.101.25 crore over the next three years. The decision to set up TIN was announced in the budget speech 2003. It was decided that TIN will be set up in two phases and NSDL will host it. Phase-I of TIN has become operational. In this, facilities for electronic filing of TDS returns have become functional from January 21, 2004 and facilities for transmission of tax payment data from banks to the Department from June 1, 2004. More than 4.35 lakh e-TDS returns have been filed with TIN. Over one crore challans had come to TIN on Online Tax Accounting System from 11905 branches of 32 designated banks collecting direct taxes. In Phase-II, collation of deductee-wise data in TDS/TCS (Tax Collected at Source) returns for eventual dematerialisation of TDS certificates, computerization of Annual Information Returns (AIRs) of high value transactions and integration of information relating to processing of returns of income are to be taken up. The objectives of Phase-II are to enable paperless filing of returns of income by the deductees on Internet; to eliminate TDS frauds; and to enable e-filing of TDS returns by Government and corporate deductors. This would result in significant reduction in cost of compliance and computerization of AIRs for widening and deepening of tax base.
Lofty goals indeed, but is the Income Tax department ready for this. See our budget story today for some genuine apprehensions. And if the Income Tax department can do it with millions of returns, why can't it be done in excise with a fraction of that number?