Indore branch of Institute of Chartered Accountants of India ( ICAI) held a seminar on TDS provisions under Income Tax Act. On this occasion income tax commissioner (TDS), RK Choudhary, said that most of the tax deductors are not following TDS provisions. They are not depositing TDS to the government after deduction and due to these defaults they became liable for interest, penalty and prosecution, said Choudhary, while addressing CAs in the city here on Saturday. He added that CBDT has issued instructions to start prosecution if the deductor commits default of more than one month, while depositing TDS.
Indore CA branch chairman, Manoj P Gupta, said that income tax department trusted the tax payers to collect tax on behalf of Income tax department and to late comer on deposit to government. But without any consideration, if any mistake has been committed in TDS Return or TDS has not been deducted then penalty of Rs10000 to Rs 1 lakh can be imposed. A practising CA, Manish Dafaria, said that revenue generated through TDS is a major source of earning for I-T department. Therefore, stringent provisions are made for TDS recovery. A number of CAs attended the event and addressed the gathering.