Penalty for not collecting TDS: I-T Dept | Latest News India - Hindustan Times
close_game
close_game

Penalty for not collecting TDS: I-T Dept

None | ByPress Trust of India, New Delhi
Feb 18, 2007 11:37 AM IST

Employers, who are not collecting and depositing TDS from the salaries of their employees, will have to pay penalty from Apr 1.

Employers, who are not collecting and depositing tax deducted at source (TDS) from the salaries of their employees, will have to pay heavy penalty from April 1 onward as the Income Tax Department has decided to tighten the noose around them.

HT Image
HT Image

Sources in the Income Tax Department said till now no penalty is specified under the Income-tax Act for failure to collect TDS.

Hindustan Times - your fastest source for breaking news! Read now.

However, the Central Board of Direct Taxes (CBDT) has been receiving information from various quarters that in a number of cases, employers as well as accounting departments in many corporates were not collecting and depositing the TDS, especially after the expansion of the provisions of TDS.

In a recent circular, the Department has inserted a new section 271CA to provide for imposition of penalty on any person who is responsible for collecting tax and has failed to collect TDS in accordance with the provisions of Act.

This amendment will take effect from April 1, 2007, and will, accordingly, apply in relation to the assessment year 2007-08 and subsequent assessment years, sources said.

The employers, who fail to collect TDS, will have to pay a penalty equal to the amount of tax which they failed to collect at source and will be imposed by the Joint Commissioner of Income Tax.

However, employers would be able file an appeal against the order of the department, if they consider that the penalty has been imposed wrongfully.

The Income Tax Department will also ensure that no penalty is imposed if the person concerned proves that there was a justified cause for his failure to collect and deposit TDS taxes.

Unveiling Elections 2024: The Big Picture', a fresh segment in HT's talk show 'The Interview with Kumkum Chadha', where leaders across the political spectrum discuss the upcoming general elections. Watch now!

Get Current Updates on India News, Election 2024, Mukhtar Ansari Death News Live, Bihar Board 10th Result 2024 Live along with Latest News and Top Headlines from India and around the world.
SHARE THIS ARTICLE ON
Share this article
SHARE
Story Saved
Live Score
OPEN APP
Saved Articles
Following
My Reads
Sign out
New Delhi 0C
Friday, March 29, 2024
Start 14 Days Free Trial Subscribe Now
Follow Us On