Goemkarponn Desk
PANAJI: Comptroller and Auditor General of India (CAG) has said that Goa Housing Board did not comply with the provisions of Income Tax Act, 1961 regarding payment of advance tax and filing of return, resulting in levy of penal interest of 70.69 lakh under the Act.
“Goa Housing Board did not comply with the provisions of Income Tax Act, 1961 regarding payment of advance tax and filing of return, resulting in levy of penal interest of ` 70.69 lakh under the Act, which was avoidable,” CAG report states
CAG said that Due to lack of tax planning and non-compliance of provisions of Income tax Act, the Goa Housing Board had to pay penal interest, amounting to ` 70.69 lakh, which was avoidable.
“The Board admitted (October 2019) that payment of penal interest was avoidable with proper assessment of taxable income. It stated that advance tax could not be paid as its financial position was precarious. It, however, noted the audit observation for future compliance. The reply is not tenable as timely payment of advance tax and filing of return are statutory requirements to be complied by following the appropriate65 management practices,”it said
It said that Similar rate of interest is chargeable under Section 234 B if an assessee failed to pay advance tax or where the advance tax paid by the assessee is less than 90 per cent of the assessed tax. Interest is also chargeable at the rate of one per cent per month under Section 234 C, if an assessee fails to pay advance tax or pays advance tax lesser than the specified percentage rates, on or before the specified due date.
Goa Housing Board, an autonomous body constituted under Goa, Daman & Diu Housing Board Act, 1968 to provide quality and cost effective housing options to citizens of Goa, did not have a system to assess the liability of advance tax payable on income earned by it.
“It did not pay advance tax on the due dates as required under Section 211 of Income Tax Act for the last four years (2015-16, 2016-17, 2017-18 and 2018-19) and defaulted in timely filing of returns of income for two years (2015-16 and 2018-19). Consequently, the Board had to pay penal interest totaling ` 70.69 lakh under Sections 234 A, 234 B and 234 C during the last four year period 2015-19,” the report states
