Prosecution and interest on late deposit
of TDS:
______________________________
TDS under income tax is main source of tax collection by the Government. However
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. CBDT is stressing on compliance of the due date of deposit of TDS by the Deductor.
Interest on late deposit of TDS is applicable @ 1.5 % per month or part thereof .The
period for delay is taken from date of deduction to date of deposit ,so in specific
cases a delay of one day may lead to pay Interest @ 3 % .Yes, it is true.
Interest on Late deposit of TDS @ 3 % for delay of one Day!
Suppose:
TDS deducted on 01.08.13
In this case Due date will be 07.09.13
If we deposit tax on 08.09.13 one day delay.
Interest will be applicable for 2 months from 01.08.13 (date of deduction ) to 08.09.13(date
of deposit) for two months @1.5 % p.m =3%
CBDT has released following press release in this regards:
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 up to 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 competent authority in suitable cases.
------------------------------------------------------------------------------------------
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♥ Pulla Harsha Vardhan ♥
© pullaharshavardhan.blogspot.in ©
------------------------------------------------------------------------------------------
of TDS:
______________________________
TDS under income tax is main source of tax collection by the Government. However
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. CBDT is stressing on compliance of the due date of deposit of TDS by the Deductor.
Interest on late deposit of TDS is applicable @ 1.5 % per month or part thereof .The
period for delay is taken from date of deduction to date of deposit ,so in specific
cases a delay of one day may lead to pay Interest @ 3 % .Yes, it is true.
Interest on Late deposit of TDS @ 3 % for delay of one Day!
Suppose:
TDS deducted on 01.08.13
In this case Due date will be 07.09.13
If we deposit tax on 08.09.13 one day delay.
Interest will be applicable for 2 months from 01.08.13 (date of deduction ) to 08.09.13(date
of deposit) for two months @1.5 % p.m =3%
CBDT has released following press release in this regards:
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 up to 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 competent authority in suitable cases.
------------------------------------------------------------------------------------------
Subscribe And Be Updated Yourself
♥ Pulla Harsha Vardhan ♥
© pullaharshavardhan.blogspot.in ©
------------------------------------------------------------------------------------------
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