The finance department has issued a circular directing officials of the state audit and accounts department to remit tax deducted at source (TDS) to the income tax department without any delay to avoid financial losses to the state. The circular was issued on Dec 19 by P C Jaffer, secretary (budget and resources), finance department. It states that the govt has noticed delays by certain departments in remitting TDS amounts. According to the circular, a similar lapse in the food and civil supplies department had earlier resulted in a financial loss to the state govt. To prevent a recurrence, officials and staff of the audit and accounts department have been instructed to ensure timely payment of TDS to the income tax department. The circular also warns that disciplinary action will be initiated against officials concerned if TDS is not remitted within the stipulated time limit. Sources said the govt deducts TDS from employees’ salaries and is legally bound to remit the amount to the income tax department within the prescribed timeframe.
