Srinagar, June 10 :
The Directorate General of Audit & 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 adherence to statutory provisions governing Income Tax (TDS) and GST-TDS compliance.
According to an official circular, audits conducted across various departments in the Union Territory revealed multiple irregularities in the deduction and remittance of Income Tax TDS and GST-TDS. The discrepancies included non-deduction and short deduction of taxes, delayed remittance of deducted amounts, non-filing or inaccurate filing of mandatory returns, and release of payments without ensuring compliance with applicable tax provisions.
The Directorate observed that such lapses not only result in adverse audit observations but also expose the concerned officers and departments to interest liabilities, financial penalties and other legal consequences under the provisions of the Income Tax Act, 1961, and the Goods and Services Tax (GST) laws.
In view of these findings, the Finance Department has directed all concerned officers to strictly comply with the provisions of the Income Tax Act and GST Acts and Rules, as amended from time to time.
The circular highlighted several key measures to strengthen compliance, including correct deduction of Income Tax TDS and GST-TDS at prescribed rates, verification of PAN, GSTIN and other mandatory statutory documents before releasing payments, timely remittance of deducted taxes to Government accounts within stipulated timelines, and accurate filing of all prescribed returns and statements within due dates.
It also stressed the need for proper maintenance of records, registers and supporting documents for audit and verification purposes, besides periodic reconciliation of deductions and remittances to ensure completeness and accuracy.
Furthermore, all Heads of Departments have been instructed to circulate these guidelines among subordinate offices and conduct periodic reviews of compliance to prevent recurrence of such irregularities.
The circular has been issued by the Director General, Audit & Inspections, Jammu and Kashmir Finance Department, with directions for immediate and strict implementation across all departments in the Union Territory.