Deductors not depositing TDS by due date are liable for prosecution

Tax deductors who default in depositing TDS by due date shall be liable for prosecution: CBDT

Central Board of Direct Taxes (CBDT) issued a press release in which CBDT said that tax deductors who deduct TDS but does not deposit the same into the Government Account within the stipulated time period are liable for prosecution under section 276B of the Income Tax Act, 1961.

The defaulters if found guilty or convicted, may be sentenced to rigorous imprisonment (RI) for a term which can extend upto seven years. The offence u/s 276B of the Income Tax Act can be compounded by Chief Commissioner having jurisdiction on the case, either before or after the launching of prosecution proceedings.

The Central Board of Direct Taxes has substantially modified existing guidelines stating that the criterion of minimum retention period of 12 months has been dispensed with.

For the benefit of public at large, it is now clarified that defaulters, who have retained the TDS deducted and failed to deposit the same in Government account within due date, shall be liable for prosecution, irrespective of the period of retention. Thus even a day of delay in deposition of TDS could result into rigorous imprisonment.

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Due Dates of TDS Payment

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TDS Payment is liable to be made by any assesse who has deducted TDS at the time of incurring any expenditure.

The Due Date for TDS Payment is separate for Govt. and Non-Govt. assessees as mentioned below:

Due Date for TDS Payment in case of Govt. Assessee:

S. No. Particulars Due Date
1. Tax Deposited without Challan Same Day
2. Tax Deposited with Challan 7th of next month
3. Tax on perquisites opted to be deposited by the employer  7th of next month

Due Date for TDS Payment in case of Non-Govt Assessee:

 S. No.  Particulars      Due Date
 1.  Tax Deductible in March         30th April
 2. Other Months and Tax opted to be deposited by the employer  7th of next month
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Due date to file Income Tax Return extended from 31st July, 2013 to 5th August, 2013

As a Measure of Taxpayers Convenience, Last Date for Filing of Returns Extended to 5th August, 2013.

There is an unprecedented surge in number of returns being e-filed during this year. 92.03 lakh returns have been e-filed up to 30th July, 2013 which is 46.8 % higher than the returns e-filed during the corresponding period of the last fiscal year.

Due to large number of taxpayers accessing e-filing website on due date of filing, some cases of taxpayers not being able to access the e-filing portal have been reported. These problems are primarily due to network constrains of the local internet service providers (ISPs).

However, as a measure of taxpayers convenience, it has been decided to extend the due date of filing of returns from 31st July, 2013 to 5th August, 2013.

Taxpayers are requested to avail of this extension of time and file their returns after paying due taxes.

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Issuance of the TDS certificate (Form 16A)

TDS certificate is a certificate of tax deduction of source (TDS) by the deductor to the deductee specifying therein the prescribed particulars like amount of TDS, permanent account number (PAN), tax deduction and collection account number (TAN) etc.

The relevant form for such TDS certificate is Form 16 in case of deduction under section 192 (Salary)  and Form 16A for deduction under any other provisions of chapter XVII-B of the Act.

TDS certificate in Form 16 is to be issued annually whereas TDS certificate in Form 16A is to be issued quarterly.

Last date for issuance of the TDS certificate (Form 16A) for Quarter 1 of FY: 2013-14 is 30th July, 2013

Delay in issuing certificates will involve a fine of Rs. 100 per day subject to an upper limit of the tax deducted.  Click here for more details

As per Circular No. 01/2012 dated 09.04.2012, it mandatory for all deductors to issue TDS certificate in Form No. 16A after generating and downloading the same from TRACES website.

One can use TDSMAN software for easy downloading of TDS certificate from TRACES website. 

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