The Income Tax department has frozen the accounts of Kingfisher Airlines on Tuesday as it failed to clear liable amount to the IT department for the past two weeks.  The IT officials have said that Kingfisher Airlines was supposed to pay  Rs. 9 crore in a week as arrears but had been paying only half of the amount. Notably, this is the second time that the accounts of Kingfisher Airlines froze. Earlier, in February the IT and service tax departments together froze Kingfisher Airlines accounts.

The income tax sources have said that liquor baron Vijay Mallya, who owned Kingfisher Airlines, had an outstanding amount of Rs. 370 crore that it deduced from employees salaries for tax deduction at source (TDS). But, Vijay Mallya had not paid the amount to the income tax department.

The sources have also said that the airlines was also supposed to pay Rs. 40 crore to the service tax department. Earlier, Kingfisher Airlines hit headlines for all wrong reasons including the delaying the salaries of its employees.

(Phani)