The Income Tax department here has noticed that several tax deductors in the state are not depositing the deductions from…
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The Income Tax department here has noticed that several tax deductors in the state are not depositing the deductions from source into the Central Government Account on time or not depositing at all.
The tax so deducted is being diverted for the purpose of their business by such deductors. This is illegal at per the Income Tax Act,1961.
On identifying such cases the Income Tax Department has conducted several surveys, especially in the case of Steel companies, Contractors, Real Estate Companies, where evidence of such defaults running into several crores of rupees has been detected.
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Not only such deductors are delaying deposit of the tax deducted but also delaying filing of quarterly returns to avoid detection by the Income Tax Department.T
he department is taking strong actions against such defaulters by launching prosecution against them under Section 276B of the Income Tax Act,1961 which can lead to rigorous imprisonment upto 7 years with fine.
It may be pointed out that prosecution cases have been filed in the case of more than 100 defaulters in Odisha and Court proceedings are going on.
In order to avoid prosecution, more than 30 tax payers have come forward for compounding of the offence by paying penalty as per the Income Tax Act at the rate of 3% to 5% per month for the default.
Odisha Income Tax Department has been successful in collecting extra tax from such defaulters of crores of rupees.
In addition to the above, for making recovery of the tax all possible measures like attachment of bank accounts, attachment of accounts of debtors and other coercive actions are being taken against the said tax defaulters the Odisha Income Tax Dept has chalked out a plan in this regard, said IT officials.
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