Chhatrapati Sambhajinagar
A cotton trading company was questioned by the TDS wing of the Income Tax Department on January 7 for failing to comply with TDS provisions. The company allegedly did not deduct any tax on Rs 20 crore interest payments and failed to deposit Rs 71 lakh of TDS deducted from other transactions into the government account, officials said.
Income Tax Officer (TDS) Rahul More stated that a team conducted a detailed inspection at the company’s office, reviewing various documents throughout the day. It was found that the company did not deduct the mandatory 10% TDS on interest payments, as required under Section 194A of the Income Tax Act, 1961. Additionally, TDS deducted on other transactions, totaling around Rs 71 lakh, was not deposited with the government. During the investigation, the department has now recovered the amount along with interest. The TDS wing conducted the thorough inquiry to ensure compliance with tax laws and to hold the company accountable.