In a case of delay in depositing Tax Deducted @ Source (TDS), two directors of a construction company have been convicted and sentenced for three months. This imprisonment is in addition to payment fine, penalty, and interest.
The additional chief metropolitan magistrate, R S Sarkale, of the Ballard Pier Court said:
Accused cannot be allowed to use the tax amount deducted for any other purpose. TDS is deducted on behalf of the government and should be deposited in the government account. Deductors are not supposed to finance their business through government money.
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Notes:
Section 276B, Income-tax Act, 1961-2018: Failure to pay tax to the credit of Central Government under Chapter XII-D or XVII-B:
276B. If a person fails to pay to the credit of the Central Government, -
(a) the tax deducted at source by him as required by or under the provisions of Chapter XVII-B; or
(b) the tax payable by him, as required by or under -
(i) sub-section (2) of section 115-O; or
(ii) the second proviso to section 194B,
he shall be punishable with rigorous imprisonment for a term which shall not be less than three months but which may extend to seven years and with fine.
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