1961Section 271C

271C. Penalty for failure to deduct tax at source.

In the 2025 Act1 match · Unreviewed

2025 Section 448Reworded · Unreviewed · Compare

From the Income Tax Department's correspondence.

(1) If any person fails to—

(a) deduct the whole or any part of the tax as required by or under the provisions of Chapter XVII-B; or

(b) pay or ensure payment of, the whole or any part of the tax as required by or under—

(i) sub-section (2) of section 115-O;

(ii) the proviso to section 194B;

(iii) the first proviso to sub-section (1) of section 194R; or

(iv) the proviso to sub-section (1) of section 194S; or

(v) sub-section (2) of section 194BA,

then, such person shall be liable to pay, by way of penalty, a sum equal to the amount of tax which such person failed to deduct or pay or ensure payment of, as aforesaid.

(2) Any penalty imposable under sub-section (1) shall be imposed by the Joint Commissioner:

¹⁰[Provided that any penalty under sub-section (1) on or after the 1st day of April, 2025, shall be imposed by the Assessing Officer.]

Footnotes

10.Ins. by Act No. 7 of 2025, w.e.f. 1-4-2025.↩

Income-tax Act, 1961: text as on 22 May 2026 · Official source ↗ ·