Recently Central Board of Direct Taxes (CBDT) has said that the TDS deductors who fail to pay the deducted TDS amount to the Central Government within stipulated time will be liable to prosecution.
There are TDS deductors who default in paying the TDS amount, even after deduction, to the government. Those deductors will be prosecuted under Section 276B of the Income Tax Act, 1961. If convicted they have to serve imprisonment for a term which may be extended to seven years.
It says, the offence u/s 276B of the Income Tax Act can be compounded by Chief Commissioner having jurisdiction on the case, either before or after the launching of prosecution proceedings. It also modified the retention period of 12 months, which has been dispensed with. So, any delay even one day from the due date will attract imprisonment.
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