According to sec 276B, if a personfails to pay the credit of the Central govt, the TDS as required by, he shallbe punishable with rigorous imprisonment for a term which shall not be lessthan 3 months but which may extend to 7 years and with fine.įor Example-Incomeaccruing of arising in the FY 2012-13 will be assessable in the AY 2013-14 andrefund in respect of excess deduction on such income can be claimed at any timebefore 31.3.15. Section 201(1) states thatwhere a person, including the principal officer of a company who is required todeduct any sum in accordance with the provisions of IT act does not deduct, ordoes not pay or after so deducting fails to pay the whole or any part of thetax as required by the rules, he shall be deemed to be an assessee in defaultu/s 201 and is liable to payment of appropriate tax so due, penalty u/s 221which may be as high as the amount of tax in default, prosecution which maylead to rigorous imprisonment and also fine. Failure to furnish the return may lead to a penalty. Every DDO is required to file an annual return of tax deduction in form no 24 by the end of may each year in respect of deductions made during the previous FY. Where donations are being made to any trust, institution from salary of employee by employer the DDO may allow the benefit of 100% deduction on such donation.
Certificates of TDS should be given to each govt servant in whose case tax has been deducted during a FY.
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They should recomputed the correct tax liability of every employee and recover full tax liability thereon. DDO are required to take into account the revised rates of surcharge while computing TDS. DDO must ensure that proper and adequate tax is deducted from the disbursement to employees of not only additional pay and allowances but also of arrears payable. Sec 192 says “any person responsible for paying any income chargeable under the head ‘salaries’ shall, at the time of payment, deduct income tax on the amount payable at the average rate of income tax computed on the basis of the rates in force for the FY in which the payment is made, on the estimated income of the assessee under this head for that FY.”’. Since DDO are responsible for payment of salaries, therefore sec 192 of IT act 1962 levies the power on him to deduct income tax.
His main functions are to look after the regulation of receipt of govt money and incurring expenditure. Such an officer is called Drawing & Disbursing Officer. As per central treasury rules ad payment rules, the head of office authorizes a junior officer to carry out the functions of drawal of money from govt and payments.
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