The Central Board of Direct Taxes (CBDT) is currently contemplating a policy that will help prevent corporate houses from misusing the TDS (Tax Deducted at Source) of their employees.

Such a rule is likely to see the light of day in the near future, CBDT chairman Sudhir Chandra, who was in the city, said while talking to media-persons.

He said that there have been reports of misuse of TDS funds by employers, owing to which the board will come up with stringent laws to stop such malpractices.

Chandra also said that the department is streamlining its strength to check the flow of black money in foreign banks. He reiterated the board's decision of appointing additional commissioners in foreign countries including the US, UK, Japan, France and other nations.

He also said that the Direct Tax Code (DTC) was likely to be implemented from the coming financial year. He said that work for the same was in progress and the department was receiving suggestions from stakeholders about DTC's implementation.

However, he declined to elaborate on the suggestions received.
On the issue of exempting salaried persons having income of up to Rs5 lakh a year from the filing of returns, Chandra said that in lieu of IT returns certificates (which are required to get visas and loans) the board may come up with an alternate certification process.

Chandra also spoke on many issues such as black money, controversies over phone tapping for investigations (Radiagate) and the I-T notice to Gujarat government, asking for information pertaining to MoUs signed during Vibrant Gujarat Summits.

"We are doing everything as per the norms. We keep sending
such notices to various governments and their agencies. We have dropped the topic as no MoUs had materialised as yet," Chandra said.

It is to be noted that Chandra has unearthed various high profile cases, including that of former Jharkhand CM, Madhu Koda. He said that since the last two years, the department has done most of the intelligence gathering through technology rather than depending on the more conventional informants.

Earlier Chandra met I-T officials and also attended a function organised by chartered accountants.