Income Tax Department Urges TDS Compliance Among Marathwada Co-operative Banks

On Tuesday, the income tax department Under the Income Tax Act 1961 point out co-operative banks in the Marathwada region to ensure agreement with tax deduction at source (TDS) provisions

TDS stands for Tax Deducted at Source. It is an indirect method of tax collection where a person or entity making a payment to another person is responsible for deducting a specified percentage of tax and depositing it with the Indian Government.

This appeal was made during a meeting organised by the income tax office, TDS, Chatrapati Sambhajinagar, at the Urban Bank Bhavan, Padegaon, in association with the Marathwada Urban Banks Co-operative Association Ltd.

The discussion had more than 120 bankers participation such as chief executive officers and accounts managers, from almost 75 co-operative banks from all eight districts of Marathwada.

One of the Deputy commissioner of income tax from Nashik, During his presentation he elaborated about different provisions of TDS. He also alerted bankers about the increasing cases of false deduction claims under Section 80GGC of the Income Tax Act, 1961, and underlined the significance of raising awareness among stakeholders to prevent misuse and fraud.

He added, “Banks should be attentive and should play an active role in the reporting of financial transactions which impact both compliance and revenue collection.”

Sailee Dhole a joint commissioner of income tax, TDS range from Nashik highlighted that correct and timely deduction of TDS is an important source of government revenue. She added, “TDS acts as the pillar of the revenue collection system. Co-operative banks, being custodians of large volumes of financial transactions, must make sure of strict dedication to the provisions without fail.”

S.C. Lohiya, the chairman of the Marathwada Urban Banks Co-operative Association Ltd, said while discussing in the meeting that attempt of the income tax department is directly engaging with co-operative banks. He added that such initiatives helps to build up the compliance framework while also clarifying practical challenges faced by bankers.