(UNI) The Central Board of Direct Taxes (CBDT) on Monday cleared the air over media reports about en masse issue of prosecution notice for TDS defaulters saying they are “full of inaccuracies” and the Mumbai Income Tax TDS office has issued show cause notice where more than Rs 5 lakh of tax was collected but was not deposited by employees.
The CBDT said, “Mumbai Income Tax TDS office has issued prosecution show cause notices only in a limited number of big cases where more than Rs 5 lakh of tax was collected as TDS from employees and yet the same was not deposited with the Income Tax Department in time.”
The Tax department said some defaulter companies and vested interests were “deliberately misleading” the media to thwart action against themselves.
“Having deducted tax from employees and other taxpayers and not depositing the same in time in the Government Treasury is an offence punishable under the law.