Income Tax Department Issues Notice to 200 Officials and Firms for Pending TDS Payments

Shimla: The Income Tax Department has taken decisive action against over 200 officials, government departments, institutions, and private firms in Shimla for failing to deposit the Tax Deducted at Source (TDS) for thousands of employees. A total of approximately Rs. 10 crore is reported to be outstanding, prompting the department to issue stern notices and prepare for potential legal action.

These entities, which include government offices, hotels, and other businesses, have been previously notified about their TDS dues but failed to comply. The Income Tax Department has now issued recovery certificates to these defaulters and has instructed them to settle their pending TDS by January 3, 2025. If the outstanding amounts are not deposited within the specified time frame, the department plans to seize the defaulters’ accounts.

TDS is a tax deducted from employees’ salaries before they are paid and is meant to be submitted to the government. According to the department, around 200 employers across Shimla, Kinnaur, Spiti, Nirmand, and Rampur have failed to deposit TDS since the 2016-17 financial year. Among these, 160 are government departments, while 40 are private sector firms including hotels and industries.

The Income Tax Department has warned that employers who continue to neglect their TDS responsibilities will face penalties. Income Tax Officer (TDS) Rai Saheb mentioned that the department has set a target of recovering approximately Rs. 68 crore in TDS for the current financial year. Furthermore, a list of 2,000 more firms is being compiled, and notices will soon be sent to these entities as well.

The Income Tax Department emphasized that TDS is a crucial mechanism for the government to collect income tax directly from income sources, ensuring that tax liabilities are settled in a timely manner. Failure to comply not only results in financial penalties but also legal consequences, including the seizure of assets.