The Telegraph
Thursday , May 15 , 2014
CIMA Gallary

RIMS mired in tax row

Rajendra Institute of Medical Sciences (RIMS) has been caught on the wrong foot by the income tax department.

The state-run hospital in Ranchi is learnt to have been showcaused and slapped a penalty of nearly Rs 70 lakh for evading tax deductions.

Close scrutiny of financial documents maintained for salary disbursement and other payments at RIMS conducted by income tax officers in early April has revealed the institute did not keep proper tax records, too.

In some cases employees were paid without deducting tax, while in other cases tax was deducted but not deposited to the I-T department.

A commissioner-rank official said that RIMS was likely to face the music in coming days as it had not yet come up with proper explanation for the bungling.

The official, who has been entrusted with supervision of vote counting in another state and cannot breach the model code of conduct by being named, stressed that during the 2013-14 fiscal, there was gross TDS (tax deducted at source) mismanagement at RIMS.

“Tax sleuths have discovered peculiar arbitrariness. When salary is paid by an organisation, tax is deducted at source and the same is deposited with the I-T department. There may be payment slabs on the basis of which deductions vary, but the amount needs to be deposited,” he explained.

During 2013-14, many employees at RIMS enjoyed full payment without TDS. Moreover, the tax deducted for some was not deposited with the IT department.

“In response to the showcause given in the last week of April, the RIMS management said the institute is facing funds crisis. The argument is baseless. Had there been funds crisis, RIMS would not have paid its employees in the first place,” the official said, adding that the penalty was imposed a week ago.

Director of RIMS Tulsi Mahto refused to comment on TDS bungling. “Financial audit is on here. But, I am not aware of any I-T notice or any such thing. If there is an issue, it will be sorted out,” he said.

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