NEW DELHI: Employers failing to pay the Government the tax deducted at source (TDS) on salaries of their employees can be jailed for up to seven years, the CBDT has said.
Failure to deduct income tax on salaries of employees or defaulting in payment of the same to the Government will be liable to a penalty of an equivalent amount, the CBDT said while notifying annual circular for TDS on salary for FY 2015-16.
“Section 276B lays down that if a person fails to pay to the credit of the Central Government within the prescribed time, as above, the tax deducted at source by him or tax payable by him… He shall be punishable with rigorous imprisonment for a term which shall be between 3 months and 7 years, along with fine,” it said.
Besides, interest will also have to be paid before furnishing of quarterly statement of TDS for respective quarter, it added. (AGENCIES)
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