TDS Depositors to Be Punished for Not Depositing in Govt Account by Due Date

One of the reasons for mismatches in TDS amounts in Form 16, Form 16A and Form 26AS could be that your company or bank has not deposited tax they deducted from your income in the government's account by due date. CBDT has clarified that failure to deposit TDS in govt account by due date deliberately would lead to prosecution.

Sometimes deductors resort to holding back tax money deducted from income of tax payers beyond due date and deploy it for business use or personal use. This offence is punishable with rigorous imprisonment of at least 3 months and extendable up to 7 years and with fine.

Earlier this offence would be prosecuted only if TDS money was retained for a minimum of 12 months. But this clause has been removed and anyone not depositing TDS in government's account within due date for valid reasons will be prosecuted.

Form 16 is the statement of TDS on salary issued by employers whereas Form 16A is the statement for all other TDS applicable, like FD interest. Form 26AS is TDS credit statement which reflects how much TDS has been credited in government's account.

It is important to cross check Form 26AS with Form 16 and Form 16A before filing tax returns. If less tax is credited in government account you might get less refund or be asked to pay up the remaining tax money.

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