(UNI) If the aggregate amount paid/credited or likely to be paid or credited to a contractor or sub-contractor exceeds Rs 75,000 during a financial year, tax should be deducted at source under section 194c of Income tax Act, a top Income Tax official said.
Addressing a seminar on Revised provisions on TDS here K Satyanarayana, Chief Commissioner of Income Tax (Karnataka-Goa), said major part of income tax revenue comes from TDS hence DDOs should be very cautious and careful while calculating TDS.
‘TDS at higher rate of up to 20 per cent has to be made if the deductee does not provide PAN to the deductor,’ he added.
He said TDS should be credited to the government account within seven days from the end of the month in which deduction/collection is made in Form 281.
Speaking at the Seminar Sanjay Verma, Commissioner of Income Tax explained duties of tax collector/deductor and also talked about consequences of default in deducting and remitting TDS. He said penalty equal to the tax that was failed to be deducted or remitted is leviable.
The Seminar was organised by the Department of Income Tax for Accounts Officers (DDOs and PAOs) of Ministries and departments of Central Government Organisations in Bangalore. UNI