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Smart & Easy TDS Software for Preparing TDS Returns

TDSMAN Blog - Smart & Easy TDS Software for Preparing TDS Returns

TDS default: Income Tax department issues over 850 prosecution notices

The Income Tax department has issued over 850 prosecution notices to firms in the private and government domain in Karnataka and Goa on charges of delay in remitting TDS funds to the exchequer.

A senior official said notices where the tax department files court cases for default in Tax Deducted at Source (TDS) payments have been issued to defaulters who have deducted tax from the payees such as employees, professionals, contractors and others and have then delayed the remittance of tax in government coffers or the I-T department.

“The department has issued 859 prosecution show cause notices to various deductors which includes private entities, government agencies and public sector undertakings (PSUs) in Karnataka and Goa region. Karnataka and Goa region.

“In 48 cases, prosecution has been sanctioned and complaints have been filed in special Economic Offences courts,” the department said in a statement.

It said in 223 cases, deductors have filed applications for compounding of offences by paying taxes, apart from interest and penalty, at the rate of 3 per cent per month from due date of payment of TDS to the actual date of payment of TDS amount as compounding fees and charges.

Such action, the official said, has been initiated in other parts of the country as well and the data is being compiled.

In Delhi, Central Board of Direct Taxes (CBDT) Chairman Sushil Chandra had recently written to the field offices of the department to step up action and check TDS defaults by firms and employers, especially in cases where such payments have dropped by more than 15 per cent as compared to last time.

With the current financial year drawing towards close, the CBDT boss issued the directive so that TDS collections, which form a substantial chunk in the overall direct tax collections, meet the set regard of Rs 3.50 lakh crore.

The I-T department has netted Rs 2.85 lakh crore revenue till January 31, 2017 under the TDS category.

As per rules, all sums deducted as Income Tax shall be paid to the credit of the central government within seven days from the end of the month in which the deduction is made or before the prescribed dates.

Failure to adhere to the above provisions are liable to attract prosecution proceedings under Section 276B of the Income Tax Act, 1961 besides interest and penalty.

The official said the courts have also cracked down on such instances in the past and in one case in Bengaluru, the court had convicted the defaulters to three years of Rigorous Imprisonment with a fine of Rs 50,000 each for the delayed payment of TDS to government account.

Source: The Economic Times

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Budget 2017: Paying rent over Rs 50,000 a month? Get ready to deduct 5% TDS

Individuals and HUFs paying rent of Rs 50,000 or more per month will now have to deduct 5% tax at source i.e TDS at the rate of 5%, as per Budget 2017 proposals. This move is aimed at ensuring that recipients of large rental incomes come into the tax net as they would be forced to report the full rental income in their tax returns in order to claim benefit of the TDS amount. This change is proposed to be made effective from 1.6.2017.

The existing provisions of section 194-I of the Act provide for TDS at the time of credit or payment of rent to the payee beyond a threshold limit. Currently, this provision is applicable to Individuals or Hindu undivided family (HUF) which is liable for tax audit under section 44AB.

However, Individuals and HUF other than those liable for tax audit were not liable to deduct tax at source under this section i.e. section 194-I of the Act. In order to widen the scope of tax deduction at source, it is proposed to insert a new section 194-I B in the Act to provide that Individuals or an HUF (other than those covered under 44AB of the Act), paying to a resident, rent of over Rs 50,000 per month, shall deduct tax at source of 5%.

However, to make this rule tax -payer friendly and easy to comply with, it is proposed that the payer need not obtain a TAN and is required to deduct the tax only once in a financial year.

It is proposed that tax shall be deducted at the time of credit of rent, for the last month of the financial year or the last month of tenancy if the property is vacated during the year to the account of the payee.

Source: The Economic Times

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Issue TDS Certificates of FY: 2016-17 (Quarter 3) by 15th February, 2017

Last date for issuance of TDS certificates for Quarter 3 of FY: 2016-17 is 15th February, 2017

The above is applicable for all other than government deductors

Delay in certificates may involve a fine of Rs. 100 per day u/s 272(A)(g) subject to an upper limit of the tax deducted. Click here for more details

Quick steps to generate TDS Certificate using TDSMAN

In TRACES Information menu

  1. Request for Form 16A.
  2. After acceptance, go to “Download Requested files” to download the file.
  3. Download PDF converter Utility to create PDFs.

In PDF Converter Utility provide the path of the downloaded file. Provide your TAN as password and click on “Proceed” to create the certificates.

Note: You can send your downloaded certificate file for conversion to info@tdsman.com, if you are facing any problem.

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TDSMAN (FY: 2017-18) released – avail Early Bird offer

Keeping its tradition, TDSMAN is one of the first to have released the version for FY: 2017-18. This will serve its users for the following:

TDSMAN is packaged with advanced corrective and validation features that help you prepare zero error TDS Return. Visit www.tdsman.com for more information.

Order Now and avail ‘Early Bird’ discount of Rs. 400 on the regular price by using Coupon Code ‘TMNEW‘.

This discount is valid for limited period.

Click Here to download the trial version of TDSMAN (FY: 2017-18) for your evaluation.

Click Here to place your Order online.

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