Pay tax on arrears: IT

MUMBAI, February 3: The Income-tax department has clarified that as per the recommendations of the Fifth Pay Commission recommendations, arrears have been paid to Central government employees but no tax has been deducted at source by many disbursing and drawing officers (DDOs). It said that DDOs who fail to comply with the provisions are liable to payment of interest under Section 201 and other penal consequences as per the IT Act.

In a statement, IT department has also said that it has issued summons to 17,548 cooperative housing societies in Mumbai asking them to furnish information regarding the occupants. As only 5,500 cooperative societies have responded, the IT is planning to initiate penal action in accordance with the provisions.