The failure
of paying to government of deducted source tax (TDS) from salaries of employees
the employers can be imprisoned for 7 years. The Central Board of Direct Taxes,
notifying the annual circular for the TDS in financial year 2015-16 on
salaries, said that the employers fail to deduct the income taxes from the
salaries and default in paying it will have to pay fine of equal amount.
The notification stated that, if any person fails to pay the incurred
tax, or to remit the deduction on source in scheduled time, he can be
imprisoned from 3 months to 7 years. It says, the submission of quarterly
report on TDS for the concerning three months, the payers will have to pay the
interest before.
The permanent standing parliamentary committee of
finance says that the government must watch those earning class to increase the
tax range; whose annual income is more than 5 lacs; and is non-TDS payers; and
do the transaction in cash. The committee, headed by M Virrappa Moily, says the
government had thought to increase the tax slab in many zones over the past
years.
The report says, the government has understood
strongly that it is the time when to search the way to accumulate the tax:
mean, access fields of tax which is intact so far. The most places are non-organized
or the economic zones of cash transaction.
According
to the ministry, 3 of the 4 taxpayers during this time are below Rs 5 lacs
income groups while only 12% of taxes by the class are collected. The standing
committee feels, the revenue department was fail to maintain the views
accordingly in this matter.
