Income Tax Department unearths huge violations in TDS deduction
March, 15th 2019
The Income Tax Department (TDS wing) detected large-scale violations in tax deduction at source in government and private sectors during surveys conducted in February.
It found that ?51 crore had been collected as TDS but not remitted to the government, and that TDS to the tune of ?508 crore that was to have been deducted before payments, was not.
A release from the I-T Department said that the surveys were conducted on February 19 and 26, covering 76 cases in government and private sectors. It said that non-deduction of taxes on expenditure to the tune of ?508 crore was detected on transactions such as Internet payments, payment gateway charges, commission payments, contract payments, year-end provisions, and payments for cloud-based services.
In light of such large-scale TDS defaults, the department is contemplating undertaking similar actions in future, the release said, adding that the tax deductors should remit TDS collections before the end of the financial year. Failure to do so could lead to arrest, detention and long-term sentences, the note said.