New Delhi, Feb. 21 -- The Central Board of Direct Taxes (CBDT) has emphasized the obligation to deduct tax at source (TDS) by employers and others making various payments, reiterating the legislative changes introduced in the past few years on penalty provisions.

In a circular issued on Thursday, CBDT highlighted that penalty is applicable where tax is not deducted at source on perquisites that are given in kind, according to a change in law introduced by way of Finance Act 2023.

The penalty in such case is a sum equal to the amount of tax that was not deducted or paid to the government.

CBDT also explained that penalty and prosecution provisions will not apply if an employer makes the tax payment to government by the time the TDS stat...