My Company deductied TDS but not paying to Govt.

[Guest]

Hi,

My company Deducted Income tax every month as part of payroll process.  But the same is not paying to the Govt. What action we can take.

[YAGAY andSUN]

If this is happening then your company would have to face panel action and in result your company would have to pay the TDS amount alongwith Interest and penalty.

Just bring these consequences to  the knowledge of your company.

[RAM BANSAL]

Deat Pulleta ,

 a)   u/s 201 the comapny and its principal officer , where the tax has been deducted at source and has not deposited the ampount of tax along with interest thereon as per sub section 1A shall be charge upon all the assets of the person or the comapny as the case may .

b)  u/s 201 (1) the person who fails to pay the tax deducted as required under the IT Act shall , without prejudice to any other consequence which may incur , be deemed to be in defult .

c)  u/s 276 B If a person fails to pay to the credit of the Central Government  the tax deducted at source by him as required by or under the provisions of  Chapter XVIIB  he shall be punishable with regorous imprsisonment for a term which  shall not be less than three months but which may extneded up to seven years and with fine .

      d) Besides the above the assessee who has not deposited the tax deducted at source is laibel to penalty u/s 271C .

       Hence  the company should deposit the TDS along with interest immedately .

CA R S BANSAL

AI Summary

TDS non-remittance risks criminal and penal liability; deposit deducted tax with interest to avoid prosecution. Deduction of tax at source by an employer followed by failure to remit the deducted amounts creates TDS non remittance liability: unpaid TDS may be charged on assets, the deductor is deemed in default if tax is not deposited with interest, criminal penalties (including imprisonment and fine) may attach for failure to pay deducted tax to government, and separate penalties for non deposit may be imposed; immediate deposit with interest is advised.