In a new move by the CBDT, salaried taxpayers are to get an SMS alert for the TDS deduction made by the employer. This move was launched by the Finance Minister, Arun Jaitley to minimize the TDS mismatch.
This new change has come into picture taking into consideration the small taxpayers who cannot afford to pay twice the amount of tax or be involved in a litigation.
This generally happens in cases like TDS deducted from a person’s salary is deposited with a wrong PAN or when people switch jobs and the TDS deducted by two employers is less than a person’s actual tax liability.
To overcome such errors, the ITD has launched this new scheme which is to include almost 2.5 crore salaried taxpayers. The employees can now match their payslip and SMS of deducted amount to check if their is any mismatch. This will also bring about transparency regarding the TDS deducted.
For this to be applicable, a person needs to have registered their mobile number on the e-filing website. Once you are registered with your number, you will get a welcome message informing you about the facility and after that every TDS deduction will be sent as an SMS alert.
The message will contain a summary of how much TDS has been deducted each month, till such time when the SMS is sent.
This SMS alert facility is currently provided on a quarterly basis. Once the process for filing the TDS returns is all organized, the department will increase the frequency of alerts. There is also a possibility that in the near-future, it could also be sent out in real-time.
Going further, this facility is also said to extended to 4.4 crore of non-salaried taxpayers in upcoming days.