The Centre has asked the tax department to plug revenue leakage resulting from large-scale defaults in payment of TDS (tax deduction at source), particularly by state government entities and banks. To ensure compliance, it has directed the authorities to take strict action like conducting survey operations.

       The move comes in light of a significant rise in defaults by banks in deduction of TDS on interest to state government PSUs, corporations, autonomous bodies, and development authorities. In a recent directive, the tax authorities were asked to collect information from state ...