I-T dept to slap up to Rs1 lakh fine for delay in TDS payments
05 Jun 2013
The income tax department will slap penalties ranging from Rs200 to Rs1,00,000 for failure to deposit tax deducted at source (TDS) in full and in time.
The Central Board of Direct Taxes (CBDT) has directed all TDS range offices of the department across the country to ensure compliance.
In case of non-compliance within the stipulated time, a fine of Rs200 per day will be charged for delay in remittance of either TDS or TCS.
Income tax officials have also been directed to inform and make aware all authorised deductors, both government and private, about the new stipulations.
Similarly, furnishing of incorrect information or failure to file the collection statement within the due date would attract penalty between Rs10,000 and Rs1,00,000.
"The assessing officer of the department will use sections 234E and 271H of the I-T Act to ensure that TDS or TCS collections are not delayed or faltered. The department, in many cases, has found that deductors delay for long the filing of these category of taxes even after deducting it from the salary of their employees," reports quoting a senior official said.
The official said this is part of the measures aimed at strengthening the TDS regime and compliance level.
Of the Rs5,58,970 crore total income tax collected during the 2012-13 financial year, Rs2,30,188 crore or 41 per cent came from the TDS category.
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