TAX
DEDUCTORS WHO DEFAULT IN DEPOSITING TDS BY DUE DATE SHALL BE LIABLE FOR
PROSECUTION: CBDT
It has come to the
notice of Income Tax 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. 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.
The TDS units of
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.
For the benefit of
public at large, 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
u/s 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.
Regards
CA. Mona Singhal
Partner
Arpit Gupta & Associates
Chartered Accountants
701, Nirmal Tower,
26, Barakhamba Road,
Connaught Place, Delhi-110001
Mobile:- +91-9873082769
Website: www.caaga.co.in
No comments:
Post a Comment