Jalgaon: Income Tax Raid On Bio-Fertiliser Firm Reveals Rs 1.02 Crore TDS Dues

Jalgaon: In a joint operation, the TDS teams of the Income Tax Department from Nashik and Jalgaon raided the office of a company in Jalgaon city, which is engaged in the production and sale of bio-fertilizers, micronutrients, bio-stimulants, and pesticides, on Thursday, uncovering arrears of Rs 1.02 crore. This action was taken under Section 133A (2A) of the Income Tax Act, 1961, under the guidance of the Joint Commissioner of Income Tax (TDS), Nashik Range.

During the survey, various documents related to the company's financial transactions were examined throughout the day. During the investigation, it was observed that the company had not deducted and deposited the applicable TDS/TCS into the central government's account as per the rules for the purchase and sale transactions of bio-fertilisers, micronutrients, bio-stimulants, and pesticides conducted during the current financial year 2025-26.

Upon thorough inquiry by the Income Tax Department's TDS officers, it was found that there were total TDS arrears of Rs 1 crore 2 lakh from the deductor. Subsequently, an amount exceeding Rs 50 lakh was immediately deposited into the central government's account, and the company's directors have assured that the remaining arrears will be paid shortly.

The Income Tax Department clarified that once TDS is deducted, it becomes 'government money,' and its misuse will not be tolerated under any circumstances. Companies, trusts, and societies are required to regularly reconcile Form 26AS and AIS, deposit TDS/TCS on time, and respond promptly to departmental notices.

Income Tax officials also warned that habitual defaulters will no longer be given exemptions under the pretext of technical errors. It was also clarified that strict action, including interest, heavy penalties, and prosecution under the Income Tax Act, 1961, will be taken against those who deliberately default on payments.

The department has expressed confidence that this strictness will be beneficial for honest taxpayers. Meanwhile, the Income Tax Department has appealed to all concerned to strictly adhere to all provisions regarding TDS/TCS and to deduct and deposit taxes on time.