Serious lapses on the part of the accounts department of the Margao Municipal Council (MMC) in maintaining TDS (tax deducted at source) records has landed the chief officer Prasanna Acharya in the dock.
Responding to a summons issued by the income tax department over the matter, Acharya on Wednesday personally appeared before the income tax officials and submitted his explanation.
Acharya, when contacted, confirmed that the IT department had issued a summons to him over irregularities in the TDS records, but sought to downplay the issue.
I personally appeared for the hearing at the income tax office on Wednesday. There is no issue at all. The accounts department had failed to maintain records of TDS receipts in the format prescribed by the IT department and they wanted an explanation, Acharya told TOI, adding that it was not a goof-up by the accounts department. I have inquired with the accounts department.
Though the TDS receipts were being deposited regularly with the income tax department, the issue was about maintaining proper records, Acharya said. Sources in the municipality, however, said that the laxity on the part of the accounts department resulted in the embarrassing situation.
The TDS records are not being maintained properly for the last two and half years. When the IT team came for inspection recently, the accountant failed to give satisfactory replies to their queries.
As the chief officer functions as the drawing and disbursing officer, the income tax department issued summons to him, a MMC source informed. Sources in the IT department, however, said that the matter was a routine inquiry.