Skip to main content

Govt probes books of defaulters to check TDS compliance

By
The income tax department has decided to go through the books of top bank defaulters with a toothcomb, to check whether tax deducted at source (TDS) on the salaries of their employees have been deposited by these companies.
The Vijay Mallya-promoted Kingfisher Airlines, in several cases, had deducted TDS from employees’ salaries, but did not deposit it with the government.
“We are going to examine the accounts to understand if there hasbeenanysuchdiscrepancies with other defaulters as well,” a senior government official told HT on the condition of anonymity.
In 2014, tax authorities filed a case in the special economic offences court in Bangalore against the now defunct Kingfisher Airlines for failing to deposit TDS worth around Rs.260 crore from 2009-2011.
“It is a criminal offence to deduct TDS and not deposit it with the government. So we filed a case against Kingfisher. We were the first agency to get a summon out for Mallya,” said the source quoted above.
The Income Tax Act provides for criminal prosecution against those failing to deposit TDS deducted from employees with the government. According to government sources, while banks are looking at ways of recovering their dues from defaulters, the tax department has enough reasons to investigate the books of the defaulters to see whether TDS deducted has been paid to the government.
The Reserve Bank of India recently submitted a list of top bank defaulters to the Supreme Court.
According to the All India Banks’ Employees Association, 5,610 wilful defaulters had collectively defrauded banks, both public and private, of a sum of Rs.58,792 crore, as of March 31, 2016.
The association, which released the names of the defaulters earlier this month, said public sector banks have 3,192 accounts as wilful defaulters, with bad assets to the tune of Rs.28,775 crore.
Among the top defaulters are Winsome Diamonds and Jewellery, Forever Precious Jewellery & Diamonds, Kingfisher Airlines and Deccan Chronicle Holdings.
Hindustan Times New Delhi,01 August 2016

Comments

Post a Comment

Popular posts from this blog

RBI deputy governor cautions fintech platform lenders on privacy concerns during loan recovery

By
  India's digital lending infrastructure has made the loan sanctioning system online. Yet, loan recovery still needs a “feet on the street” approach, Swaminathan J, deputy governor of the Reserve Bank of India, said at a media event on Tuesday, September 2, according to news agency ANI.According to the ANI report, the deputy governor flagged that fintech operators in the digital lending segment are giving out loans to customers with poor credit profiles and later using aggressive recovery tactics.“While loan sanctioning and disbursement have become increasingly digital, effective collection and recovery still require a 'feet on the street' and empathetic approach. Many fintech platforms operate on a business model that involves extending small-value loans to customers often with poor credit profiles,” Swaminathan J said.   Fintech platforms' business models The central bank deputy governor highlighted that many fintech platforms' business models involve providing sm
Post a Comment
Read more

Credit card spending growth declines on RBI gaze, stress build-up

By
  Credit card spends have further slowed down to 16.6 per cent in the current financial year (FY25), following the Reserve Bank of India’s tightening of unsecured lending norms and rising delinquencies, and increased stress in the portfolio.Typically, during the festival season (September–December), credit card spends peak as several credit card-issuing banks offer discounts and cashbacks on e-commerce and other platforms. This is a reversal of trend in the past three financial years stretching to FY21 due to RBI’s restrictions.In the previous financial year (FY24), credit card spends rose by 27.8 per cent, but were low compared to FY23 which surged by 47.5 per cent. In FY22, the spending increased 54.1 per cent, according to data compiled by Macquarie Research.ICICI Bank recorded 4.4 per cent gross credit losses in its FY24 credit card portfolio as against 3.2 per cent year-on-year. SBI Cards’ credit losses in the segment stood at 7.4 per cent in FY24 and 6.2 per cent in FY23, the rep
Post a Comment
Read more

India can't rely on wealthy to drive growth: Ex-RBI Dy Guv Viral Acharya

By
  India can’t rely on wealthy individuals to drive growth and expect the overall economy to improve, Viral Acharya, former deputy governor of the Reserve Bank of India (RBI) said on Monday.Acharya, who is the C V Starr Professor of Economics in the Department of Finance at New York University’s Stern School of Business (NYU-Stern), said after the Covid-19 pandemic, rural consumption and investments have weakened.We can’t be pumping our growth through the rich and expect that the economy as a whole will do better,” he said while speaking at an event organised by Elara Capital here.f there has to be a trickle-down, it should have actually happened by now,” Acharya said, adding that when the rich keep getting wealthier and wealthier, they have a savings problem.   “The bank account keeps getting bigger, hence they look for financial assets to invest in. India is closed, so our money can't go outside India that easily. So, it has to chase the limited financial assets in the country and
Post a Comment
Read more