Couple gets 3 months rigorous imprisonment for failure to deposit TDS
October 16, 2018Two directors of a Mumbai based firm have been sentenced to three months rigorous imprisonment by a Metropolitan Magistrate Court for defaulting on payment of INR 6 Lakh TDS (Tax Deducted at Source) in 2012. A fine of INR 5,000 was also imposed upon each of them. According to officials, conviction in TDS cases is rare.
The accused directors happen to be husband and wife, and run Lightwave Trading in East Andheri. They were present at the Court hearing on Monday and were taken into custody by the police. However, they have been released on bail and will now appeal against the conviction.
It is mandatory to pass on the deducted TDS amount to the Government on the 7th of each month. According to the principal chief commissioner, I-T (Mumbai region), the two directors had not deposited the deducted TDS amount to the Government on the due date.
A show-cause notice had been issued by the I-T department upon the couple’s default in 2012, and after a prosecution sanction was granted against them, a prosecution complaint was filed by the I-T department. The accused directors had then filed for settlement - to close the case, before the I-T authority, however, they did not attend the hearing. The I-T department then rejected the settlement request on the ground of non-appearance.
According to the officials, the two were avoiding the court proceedings for a long time and were also trying to delay the process by seeking stay on the case proceeding, by approaching the Bombay High Court.