The provisions of the Income Tax Act relating to Tax Deduction at Source from Salaries are of immense importance in the context of present scenario when TDS collections account for almost 30% of total collection of Direct Taxes.
The Income Tax Act provides for penalties for defaults in respect of deduction of TDS and deposit thereof into Central Government account. The Law is even more strict in case the TDS has been deducted but not deposited into Government account in the prescribed manner. In such a case, besides penalties, the Law provides even for prosecution. Therefore, the Tax Deductors need to be well conversant with the provisions relating to Tax Deduction at Source. This booklet under the TPI series is an attempt to put forth the various provisions relating to Tax Deduction at Source from Salaries in a lucid but precise manner.