Mumbai: The income tax department has unearthed worth Rs.3, 200 crore scam where 447 companies deducted tax from its employees as TDS but did not deposit with the government and diverted to further their business interests.
According to an investigation between April 2017 to March 2018 irregularities were found in the TDS accounts of some entities and individuals.
Income Tax department’s TDS wing has started prosecution proceedings against the firms and in some of the cases, warrants have also been issued.
The offences under IT act to attract a minimum punishment of rigorous imprisonment of 3 months to a maximum of 7 years plus fine. The prosecution is initiated under Section 276-B.
However, sources in IT dept claims, “It is not a scam – but a very common verification survey details. Every year, its done. Quantum may vary year to year. This is just like an employer deducts TDS on salary but did not deposit on time.”