Infrastructure firm MD convicted for not remitting TDS

The Special Court of Economic Offences, Bengaluru, convicted the Managing Director of an infrastructure firm for not remitting the income tax deducted at source (TDS) from its employees to the government account, the Income Tax Department said on Monday.

The court held that the accused had committed an offence punishable under section 276B of the Income Tax Act, 1961 and imposed rigorous imprisonment for three months and Rs 5,000 fine, the department said in a statement here.

The TDS amount was Rs 60,78,468, which was not deposited in the treasury as prescribed under rule 30 of the Income Tax Rules, 1962.

The department, however, did not name the accused or the company and its location in the statement.

Several such cases of non-deduction of taxes and non-remittance to the government account are pending before the Special Court.

"The IT Department has initiated a drive to detect cases where TDS was deducted but not paid into the government account within the due dates, stipulated under the rule," noted the statement.

Till date, the department has conducted 161 surveys and spot verification in its jurisdiction across Karnataka and Goa and detected violation of TDS provisions amounting to Rs 109.51 crore.

"The drive will be intensified in the coming months," added the statement.

--IANS

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