As it is well known that the income tax department has allowed Aadhaar card holders to use the biometric id number in lieu of the Permanent Account Number (PAN). But as per new provision of Income Tax, fine of Rs. 10,000 may be levied in case of wrong Aadhar Number. As per the latest amendments in the Finance Bill 2019, not only allowed people to use Aadhaar in lieu of PAN but also introduced a penalty for giving a false Aadhaar number. However, the new penalty rules are applicable only in cases where you are using Aadhaar in lieu of PAN and where quoting PAN is mandatory according to the income tax department rules. It is well known that although Aadhaar is issued by the Unique Identity Authority of India, yet the fine is not imposed by UIDAI but by the income tax department. Under Section 272B of the Income Tax Act, 1961, the department can impose a penalty in case of default in complying with provisions relating to PAN, i.e., failure to obtain, quote, or authenticate PAN.
It has come to the notice of
Income Tax Department that many times the tax deductors, after deducting TDS
from specified payments, are deliberately not depositing the taxes so deducted
in Government account and continue to deploy the funds so retained for business
purposes or for personal use. Such retention of Government dues beyond the due
date is an offence liable for prosecution under Section 276B of the Income Tax
Act, 1961. The defaulter, if convicted, can be sentenced to Rigorous
Imprisonment (RI) for a term which can extend upto seven years.
The TDS units of Income Tax
Department have been taking up prosecution proceedings in suitable cases where
TDS has been retained beyond the due date. The Central Board of Direct Taxes
has partly modified existing guidelines for identification of cases for
launching prosecution. As per the revised guidelines, the criterion of minimum
retention period of 12 months has been dispensed with. For the benefit of
public at large, it is now clarified that defaulters, who have retained the TDS
deducted and failed to deposit the same in Government account within due date,
shall be liable for prosecution, irrespective of the period of retention.
However, 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.
In the recent past, several defaulters have submitted petitions for compounding
of such offences and compounding orders have also been passed by the Competent
Authority in suitable cases.
Comments
Post a Comment