(a) whether the Government have come to know that the some organisations are indulging into malpractices by not depositing the TDS amount deducted from incomes to individuals;
(b) if so, the details thereof and the total loss to the exchequer during the last year on this account; and
(c) the remedial measures adopted by the Government to curtail this practice?
MINISTER OF STATE IN THE MINISTRY OF FINANCE AND COMPANY AFFAIRS (SHRI GINGEE N. RAMACHANDRAN)
(a) Yes sir, In some cases failure to deposit the amount of tax deducted at source
has come to the notice of the Government.
(b) Since the default in respect of non-deposit of tax deducted at source is dealt
with at the Field Unit level, such details are not centrally maintained.
It is mentionable that collection of information from all the Field Units
in the country would involve substantial time and effort, which may not be
commensurate to the objective sought to be achieved.
c) The remedial measures are prescribed in the Income Tax Act, 1961 itself and
include recovery of the amount of tax not deposited, levy of interest and
penalty and institution of prosecution proceedings.