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

Budget: Startup sector gets new Fund of Funds, FM to allocate Rs 10K cr

By
  The Indian startup sector received a boost with Finance Minister Nirmala Sitharaman announcing the establishment of a new fund of funds (FoF) in the Budget 2025. The minister unveiled a fresh FoF with an expanded scope, allocating Rs 10,000 crore. The initial fund of funds announced by the government with an investment of Rs 10,000 crore successfully catalysed commitments worth Rs 91,000 crore, the minister said.   “The renewal of the Rs 10,000 crore commitment to the Fund of Funds for alternative investment funds (AIFs) is a significant step forward for the Indian startup and investment ecosystem. The initial Rs 10,000 crore commitment catalysed Rs 91,000 crore in investments, and I fully expect this fresh infusion to attract an additional Rs 1 lakh to Rs 1.5 lakh crore in capital,” said Anirudh Damani, managing partner, Artha Venture Funds.   Damani further added that this initiative will provide much-needed growth capital to early-stage startups, further strengthenin...
Post a Comment
Read more

GST collection for November rises by 8.5% to Rs.1.82 trillion

By
  New Delhi: Driven by festive demand, the Goods and Services Tax (GST) collections for the Union and state governments climbed to Rs.1.82 trillion in November, marking an 8.5% year-on-year growth, according to official data released on Sunday. Sequentially, however, the latest collection figures are lower than the Rs.1.87 trillion reported in October, which was the second highest reported so far since the new indirect tax regime was introduced in 2017. The highest-ever GST collection of Rs.2.1 trillion was reported in April. The consumption tax figures highlight the positive impact of the recent festive season on goods purchases, providing a much-needed boost the industry had been anticipating. The uptick in GST collections driven by festive demand had been anticipated by policymakers, who remain optimistic about sustained growth in rural consumption and an improvement in urban demand. The Ministry of Finance, in its latest monthly economic review released last week, stated that I...
Post a Comment
Read more