Finance Department Orders Crackdown on Tax Deduction Lapses Across Jammu Kashmir Administration | Kashmir Life

SRINAGAR: The Directorate General of Audit and Inspections, Jammu and Kashmir Finance Department, has issued stringent directions to all Drawing and Disbursing Officers (DDOs), Financial Advisors, Chief Accounts Officers and Treasury Officers to ensure strict compliance with statutory provisions governing Income Tax TDS and GST-TDS.

The directive follows audit findings across various departments in the Union Territory, which revealed multiple irregularities in tax deduction and remittance processes. These included instances of non-deduction and short deduction of taxes, delays in remitting deducted amounts, failure to file or incorrect filing of mandatory returns, and release of payments without verifying compliance with applicable tax provisions.

According to the Directorate, such lapses have led to adverse audit observations and expose concerned officials and departments to interest liabilities, financial penalties, and other legal consequences under the Income Tax Act, 1961, and applicable Goods and Services Tax laws.

In response, the Finance Department has mandated strict adherence to all provisions of the Income Tax Act and GST Acts and Rules, as amended from time to time.

The circular outlines key compliance measures, including correct deduction of TDS and GST-TDS at prescribed rates, verification of PAN, GSTIN and other statutory details prior to payment release, timely remittance of deducted taxes within stipulated deadlines, and accurate submission of all required returns and statements.

It further emphasises the need for proper maintenance of records and supporting documentation for audit purposes, along with periodic reconciliation of deductions and remittances to ensure accuracy and completeness.