Many companies found not to have transferred amount to I-T Department
BANGALORE: The Income Tax Department has sent a strong signal to companies, firms and organisations against holding back the sums deducted under Tax Deducted at Source (TDS) and directed them to promptly pay it to the department without delay.
The Income Tax officials, who participated in a seminar-cum-workshop on TDS here on Wednesday, reminded the deductors that the sum cut under TDS was government property and nobody could delay the payment or use it for other purposes.
Delivering the key-note address, Chief Commissioner of Income Tax –II, Bangalore, Pramod Kumar, stated that the TDS had been introduced to curb tax evasion, to bring new assessees in the tax net and to facilitate easy tax collection.
But the facilities offered under TDS had been misused by some companies. He said the Income Tax Department had detected major defaults in TDS payments by several companies and government undertakings. It had been found that TDS had not been cut while making payments in some of the corporate hospitals, medical colleges and airline companies. Mr. Kumar said during a survey conducted to determine the defaults, it was detected that a leading airline company had defaulted to the tune of more than Rs. 10 crore. It was also noticed that perquisites paid to employees by the companies had not been properly taken into consideration.
He said defaults in collection as well as remittance of TDS was punishable with heavy fine and imprisonment, or both. The department had taken steps to facilitate the deductors to promptly pay the deducted sum to the department.
The steps included a TDS help desk at HMT building in Bangalore. This facility would clarify doubts related to tax deduction at source and would function on all working days between 10.30 a.m. and 1.30 p.m.
In another step, the department had opened facilitation centres in all cities with the help of National Securities Depository Limited (NSDL).
Others who spoke included Chief Commissioner of Income Tax II, P. Ranganathan, and Commissioner of Income Tax (TDS) K.K. Misra.
Later, speaking to The Hindu, Mr. Misra said that the default in collection of TDS as well as remittances had been found in many organisations, including government ones.
He said the department had begun a survey to detect defaults in its own set-up, as the department believed in putting its house in order first.
Mr. Pramod Kumar said it had been suggested to the Government to enable the department to introduce e-tax remittance and the NSDL had also promised to look at it.
Once the e-remittance system was in place, it would become easier for the taxpayer to remit the tax, while individual assessees would also be in a position to check their accounts on a day-to-day basis.