The government is worried because employers are not deducting tax at source, something that has resulted in a loss of more than Rs 1,000 crore to the exchequer.
The Income-Tax department has written to more than 1,000 employers in the past few months on complying with rules on tax deducted at source (TDS) and advance tax depository.
"More than Rs 1,000 crore tax in TDS and advance taxes are in the process (of being) extracted from deductors to be deposited in the government accounts. We have written letters to such assessees to ensure tax compliance under this head," CBDT Member (Revenue) Saroj Bala told PTI.
The I-T department has electronic records of all non-complying taxpayers as part of the Online Tax Accounting System (OLTAS) and National Securities Depository Limited (NSDL) data, Bala said.
The department has also given Commissioners and other officials at field formations CDs on TDS returns so that the tax accrued under this head could be streamlined.
On March 17, when the government said that it had collected more than Rs 3,12,000 crore as direct taxes in order to meet the truncated target of Rs 3,45,000 crore this fiscal, it said non-compliance in TDS deposits is taking place.
"It has also been noticed that a large number of deductors have not deposited tax deducted at source into government account. Failure to pay the tax deducted at source.... May attract penal consequences and tax scrutiny," the CBDT had said.