Patna, Jul 18 (UNI) Public sector Banks play an important role in the collection of TDS, and its overall contribution in terms of Income Tax collection accounted for 35 per cent.
This view was unanimously expressed here today by the speakers at a seminar on ''Role of Banks in TDS collection'', Initiating the discussion, Chief Commissioner of Income Tax, Bihar and Jharkhand, S K Sinha highlighted the substantial contribution of Banks to the national exchequer through collection of TDS and other taxes.
He said Tax Deducted at Source(TDS) was one of the most important mehtods of collection of revenue and the amount collected through it contributed more than 35 per cent of gross collection of Income Tax (Rs 1,06,000 crore out of Rs 3,14,000 crore) in the country.
However, the contribution of TDS in Bihar and Jharkhand was Rs 1,510 crore against the overall IT collection of Rs 2,700 crore, Dr Sinha said and claimed that in fact TDS contributed nearly 57 per cent of the total income tax collection in Bihar and Jharkhand.
The basic purpose of TDS was to collect the revenue in advance from the assessees, while the assessees earned the income and in the process checked the outflow of revenue, Dr Sinha maintained.
Stating that Banks acted as the conduit for deposited taxes and remitted it to the Central Government treasury, he said all direct taxes other than book transfer by Central and State Governments came in through Banks.
Among others, Commissioner of Income Tax (TDS),Patna, Ujjal Chowdhury stressed on the need for streamlining the functioning and accountability of Drawing and Disbursing Officer and computersied system of accounts with new software.
UNI KKS-ABA SJC/src1941