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Yet another scam!
Rs.3,200 crores!!!
This time it is TDS…Tax Deduction at Source
Well, you heard it right.The IT department unveiled Rs. 3200/- crore by 447 cases.
These companies dutifully deducted the TDS at the time of payment of money, as required by the income tax law but did not deposit the same in the governmenttreasury.
Yes, they kept the money all by themselves.
Let’s understand in detail, what really happened…
TDS (Tax deduction at source) is the certain amount deducted by a person or firm while making payment to another. Provisions of section 192 and 194 series relate to TDS on salary, rent, interest, commission, professional fees etc of the Income Tax Act 1961.
The concept of TDS was introduced to keep a check on complete evasion of tax payable by the person receiving some payment or earning some kind of income.
The employer or any other deductor of TDS is legally duty bound to deposit the prescribed amount deducted in name of TDS with the GOI.
The time limit prescribed for deposition of TDS deducted is normally the 7th day of next month. For the TDS deducted on salary for the month of March, the due date of deposit is 30th April. Assessing officer taking prior permission of joint commissioner may on request allow deductors to deposit TDS quarterly.
Defaulters deducted TDS from employees salary and from others at the time of payment but did not deposit the same with government treasury. As per sources, 447 companies/ firms deducted TDS and instead of further rendering it to government employed the funds for satisfying working capital needs or other business interests. The firms include builders, one leading being politically connected making a default of Rs 100/- crores. Further defaulters include Infrastructure companies default ranging up to 14 crores and an MNC not depositing 11 Crores with the requisite authorities. Movie production houses, startups and fly by night operators are other offenders contributing to the fraud of Rs.3200 crores.These figures showing deployment of public fund for private purposes are for the period from April 2017 to 31 March 2018.
Not really!! In fact it’s as easy as making an online payment on e-commerce websites or depositing cash in banks. TDS can be deposited in cash at authorized bank branches or can be paid through e payment online in the fraction of seconds.
Employees would be facing many difficulties at the time of filing Income Tax Return:
Else, fight litigation
Need Help, Contact CA now!
These defaulters would face Prosecution under section 276B of the Income Tax Act. Would face rigorous imprisonment ranging from 3 months- 7 years for the default.
From 2016 the government has launched SMS alert system to help you keep a watch over your TDS deposition.
SMS alerts are sent every quarter from the Income Tax Department for tax deposited in your account .Just Match TDS deducted in Salary Slip with the SMS and see if it matches. In case, of any mismatch, contact your employer immediately.
For filing your income tax returns in the easiest way visit Tax2win.in
