TDS wing conducts survey in ESAF, South Indian Bank

The TDS (Tax Deducted at Source) wing of the Income Tax (I-T) department conducted a survey at two Thrissur-based banks – ESAF and South Indian Bank – on Tuesday.

According to the I-T sources, the survey was conducted to investigate suspected TDS defaults on interest paid for deposits taken. The department is also investigating the deposits accepted without proper verification and documents. It is suspected that the default amount may run into crores. The survey was continuing and the exact magnitude of defaults was yet to be ascertained.

The survey has been conducted at the two banks as the department found flouting of TDS norms. In addition, the banks have been receiving deposits without verification and proper documents, the I-T sources said. The pressure on the branch heads to meet the deposit targets prompted them to receive deposits without proper documents, they pointed out.

The survey will be continued in other banks too in the coming days, the sources added.