I-T dept warns tax defaulters of prosecution if TDS not paid
Updated: Aug 06, 2013 02:27:17pm
New Delhi, Aug 6 (KNN) The Income tax department has warned tax defaulters, who fail to deposit tax deducted at source (TDS) of prosecution, even leading to imprisonment for as many as seven years.
“It has come to the notice of I-T department that many times the tax deductors, after deducting TDS from specified payments, are deliberately not depositing the taxes so deducted in government account and continue to deploy the funds so retained for business purposes or for personal use,” the finance ministry said in a statement.
“Such retention of government dues beyond the due date is an offence liable for prosecution under Section 276B of the Income Tax Act, 1961. The defaulter, if convicted, can be sentenced to Rigorous Imprisonment (RI) for a term which can extend upto seven years,” it added.
The TDS units of the Income Tax Department have been taking up prosecution proceedings in suitable cases where TDS has been retained beyond the due date. The Central Board of Direct Taxes has partly modified existing guidelines for identification of cases for launching prosecution.
As per the revised guidelines, the criterion of minimum retention period of 12 months has been dispensed with. It is now clarified that defaulters, who have retained the TDS deducted and failed to deposit the same in government account within due date, shall be liable for prosecution, irrespective of the period of retention.
However, the offence under Section 276B of the Income Tax Act can be compounded by Chief Commissioner having jurisdiction on the case, either before or after the launching of prosecution proceedings.
In the recent past, several defaulters have submitted petitions for compounding of such offences and compounding orders have also been passed by the Competent Authority in suitable cases.
The Central Board of Direct Taxes (CBDT), the administrative authority of the Income Tax department, had on July-31 extended the last date for filing I-T returns to August 5 for the 2013-14 fiscal.
The e-filing of income tax returns has crossed the one crore mark with the maximum of such filings done by the salaried class of taxpayers.
In data released by the Bangalore based Central Processing Centre (CPC) of the I-T department, a total of 1,03,21,775 e-returns were filed by the taxpayers till July-31, which is much below than over 2 crore e-filing for the financial year of 2012-13.
A total of 57, 81,252 people under the salaried class filed their e-returns till July-31 through the internet which is also much lesser than over 64 lakh figure by salaried taxpayers last year. (KNN/SD)
“It has come to the notice of I-T department that many times the tax deductors, after deducting TDS from specified payments, are deliberately not depositing the taxes so deducted in government account and continue to deploy the funds so retained for business purposes or for personal use,” the finance ministry said in a statement.
“Such retention of government dues beyond the due date is an offence liable for prosecution under Section 276B of the Income Tax Act, 1961. The defaulter, if convicted, can be sentenced to Rigorous Imprisonment (RI) for a term which can extend upto seven years,” it added.
The TDS units of the Income Tax Department have been taking up prosecution proceedings in suitable cases where TDS has been retained beyond the due date. The Central Board of Direct Taxes has partly modified existing guidelines for identification of cases for launching prosecution.
As per the revised guidelines, the criterion of minimum retention period of 12 months has been dispensed with. It is now clarified that defaulters, who have retained the TDS deducted and failed to deposit the same in government account within due date, shall be liable for prosecution, irrespective of the period of retention.
However, the offence under Section 276B of the Income Tax Act can be compounded by Chief Commissioner having jurisdiction on the case, either before or after the launching of prosecution proceedings.
In the recent past, several defaulters have submitted petitions for compounding of such offences and compounding orders have also been passed by the Competent Authority in suitable cases.
The Central Board of Direct Taxes (CBDT), the administrative authority of the Income Tax department, had on July-31 extended the last date for filing I-T returns to August 5 for the 2013-14 fiscal.
The e-filing of income tax returns has crossed the one crore mark with the maximum of such filings done by the salaried class of taxpayers.
In data released by the Bangalore based Central Processing Centre (CPC) of the I-T department, a total of 1,03,21,775 e-returns were filed by the taxpayers till July-31, which is much below than over 2 crore e-filing for the financial year of 2012-13.
A total of 57, 81,252 people under the salaried class filed their e-returns till July-31 through the internet which is also much lesser than over 64 lakh figure by salaried taxpayers last year. (KNN/SD)
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