Company MD sentenced for not depositing TDS
THE Court of the Special Judge, Economic offences, Hyderabad has sentenced the Managing Director of a Public Limited Company to rigorous imprisonment for 3 months along with a fine of Rs. 5000/- each for the two offences committed under section 276B and 276C of the Income Tax Act. The assessee company had deducted tax at source from the salaries, dividends and payments made to the contractors, but had not deposited the tax so deducted to the credit of the Central Government within the prescribed time. The assessee company had also failed to issue the requisite certificates of TDS u/s 203 of the Income Tax Act. The Court came to the conclusion that the assessee had willfully attempted to evade the payment of tax and had committed offences punishable u/s 276B and 276C(2) of the Act.
As per Section 276B, If a person fails to pay to the credit of the Central Government, the tax deducted at source by him as required by or under the provisions of Chapter XVII-B……..,he shall be punishable with rigorous imprisonment for a term which shall not be less than three months but which may extend to seven years and with fine.
As per Section 276C(2), If a person wilfully attempts in any manner whatsoever to evade the payment of any tax, penalty or interest under this Act, he shall, without prejudice to any penalty that may be imposable on him under any other provision of this Act, be punishable with rigorous imprisonment for a term which shall not be less than three months but which may extend to three years and shall, in the discretion of the court, also be liable to fine.