FinMin warns against not depositing TDS

After a Delhi court sent a director of a real estate and IT solutions company to jail for non-compliance in an Income Tax Deduction at Source (TDS) default case, the Finance Ministry said on Saturday that the TDS is government money, which has to be deposited in the treasury on a timely basis.

Criminal prosecution

Failure to deposit TDS will lead to criminal prosecution with imprisonment from three months to seven years, it  said.

This year, the ministry said, the Principal Chief Commissionerate of New Delhi has sanctioned prosecution in approximately 240 cases which "clearly shows the strict attitude of the Income Tax Department towards the defaulters".

Tax defaulters will find it difficult to escape from penalties and prosecutions from a vigilant and proactive IT department, an official release said.

Tis Hazari Court had on Friday ordered judicial custody of the director of the said company for deducting TDS, but depositing the same in the government account, despite a statutory obligation by the Income Tax Act.

"This also led to harassment of many innocent persons whose TDS had been deducted, but the TDS returns had not been filed by the real estate company. It was found that during FY2013-14, FY2014-15 and FY2015-16, amounts of Rs 45,68,990, Rs 35,45,290 and Rs 33,36,970 were deducted by the assessee company. The assessee company was found to be defaulting on filing of TDS return statements," the release added.

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