Introduction<\/span><\/strong>:<\/span> <\/span><\/p>\n <\/span><\/p>\n 1.1 <\/span><\/strong><\/p>\n (i) <\/span><\/strong><\/p>\n (ii) <\/span><\/strong><\/p>\n 1.2 <\/span><\/p>\n between <\/span><\/p>\n Identification <\/span><\/p>\n 2.1. <\/span><\/p>\n (i) <\/span><\/p>\n (ii) <\/span><\/p>\n<\/div>\n <\/strong><\/p>\n <\/a>for <\/p>\n <\/p>\n 2.2 <\/p>\n 2.3 <\/p>\n 2.4 <\/p>\n Procedure for <\/p>\n <\/p>\n 3.1 After identification of potential <\/p>\n
\n<\/span><\/strong>As per the Income Tax Act, all
\ncases where TDS\/TCS is deducted but not deposited within the due date, as
\nprescribed, are punishable u\/s 276B\/276BB or 278A. The selection of cases &
\ntheir processing is further governed by Instruction F.No.
\n285\/90\/2008-IT(Inv-I)\/05 dated 24.04.2008 which has been modified by the CBDT
\n[vide F.No.285\/90\/2013-IT(Inv.)] dated 07.02.2013. Presently, the monetary
\nlimit specified for cases to be considered for prosecution is as under:
\n<\/span><\/strong>Cases, where amount of tax deducted
\nis Rs.1,00,000 or more and the same is not deposited by the due date prescribed
\nunder the Income Tax Act, 1961 read with the Income Tax Rules, 1962 shall
\nmandatorily be processed for prosecution in addition to the recovery.
\n<\/span><\/strong>Cases, where the tax deducted is
\nbetween Rs.25,000 and Rs.1,00,000 and the same is not deposited by the due date
\nprescribed under the Income Tax Act, 1961 read with the Income Tax Rules, 1962
\nmay be processed for prosecution depending upon the facts and circumstances of
\nthe case, like where there are instances of repeated defaults and\/or tax has
\nnot been deposited till detection.
\n<\/span><\/strong>Thus, the present Instructions
\nenvisage two categories of cases for prosecution in TDS related offences; the
\nfirst category is cases which are mandatorily to be processed (TDS of more than
\nRs. 1,00,000 deducted but not deposited before due date) and the second
\ncategory is defaults
\nRs. 25,000\/- to 1,00,000\/- which may be processed depending upon facts and
\ncircumstances of the cases.
\nof cases:<\/span><\/strong>
\nCPC-TDS\/TRACES will generate a list of prosecutable cases for mandatory
\nprocessing for prosecution (List-A) in accordance with the criteria laid down
\nby the CBDT vide it\u2019s instruction dated 07.02.2013 or any other modified
\ncriteria, if the same is done in view of suggestions made in this regard. Such
\nidentification shall be done within one month of the filing of the quarterly
\nTDS statement. CPC \u2013 TDS following the Instruction dated 07.02.2013, adopted
\nfollowing two parameters for identifying prosecutable case for mandatory
\nprocessing:-
\n<\/span>where Late Payment Interest had not been
\npaid completely\/not paid at all till that date;
\n<\/span>where deduction had been made but no
\nchallan was available in the account of the deductor i.e. the amount was not at
\nall paid to the Government account. (Vide F.No. CPC(TDS)\/Prose_cases\/2014-15
\ndated 15.09.2014, limit of Rs. 1,00,000\/-
\nthe cases of Late Payment Interest and for Short Payment all the cases have
\nbeen approved.)<\/p>\n
\nCPC-TDS will generate another list of
\ncases(List-B) involving defaults of delay in payment of Rs. 25,000 to Rs.
\n1,00,000\/- along with default sheets for the year as well as preceding year and
\nsubsequent year ( if details are available), within one month of the filing of
\nthe quarterly TDS statement, to help AO(TDS) to identify cases fit for
\nprosecution based on facts and circumstances of the case. The AO(TDS) can
\nidentify the cases from second list and also from the information gathered from
\nexternal sources to complete identification of second category of cases and
\nenter them in prosecution register maintained manually or on utility to be
\nprovided by CPC-TDS. <\/p>\n
\nIt may be noted that the TDS cases,
\notherwise dealt by the International Taxation Division, with respect to
\npayments made to non-residents also required to be dealt with in the same
\nmanner as other cases under Chapter-XVII of the Income Tax Act, 1961. <\/p>\n
\nIn cases of default in furnishing the
\nquarterly TDS statement, CPC-TDS shall generate the list of such non-filers
\nwithin one month from due date and communicate to the AO(TDS) for issue of
\nnotice and further pursuit. <\/p>\n
\nlaunching prosecution<\/strong><\/p>\n
\ncases for prosecution by the CPC \u2013 TDS in case of mandatory processing or
\notherwise, it should be entered in the \u2018Prosecution register\u2019 maintained in
\nForm\u2013C (page 74 of the Prosecution Manual) and to be reported to the CIT(TDS)
\nwho shall also maintain the prosecution register in Form\u2013D (page 75 of the
\nProsecution Manual). Till a specific module in CPC-TDS is made functional for
\nhaving control on prosecution proceedings, the entries may be made in manual
\nregister.<\/p>\n
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