Delayed or Non payment of TDS – Department to initiate action against TDS defaulters

The Income Tax department has decided to crack the whip on big companies and organisations that do not remit TDS money even after deducting it from their workers salaries. The Central Board of Direct Taxes (CBDT), the controlling and administrative authority of the department, has asked all I-T ranges to identify such cases where revenue implication is large and initiate prosecution in competent courts.

The action will be taken under Section 276B of the I-T Act which deals with failure to pay tax to the credit of central government (I-T department) and punishment under the said provision carries a rigorous imprisonment varying from three months to seven years of jail along with a fine.

The department has detected some big cases of non- compliance in depositing tax stipulated under the TDS (Tax Deducted at Source) category. The department has taken this violation seriously and I-T authorities have been asked to initiate prosecution in cases of high revenue and blatant violation of TDS remittance laws.

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