271C Penalty for failure to deduct tax at source

CHAPTER XXI

PENALTIES IMPOSABLE

Penalty for failure to deduct tax at source.

271C. (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) ²[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; ³[or]

(ii) the ¹[second] proviso to section 194B,

⁴[(iii) the first proviso to sub-section (1) of section 194R; or

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

⁴[(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 ⁴[or ensure payment of] as aforesaid.

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

⁵[“Provided that any penalty under sub-section (1) on or after the 1st day of April, 2025, shall be imposed by the Assessing Officer.”.]

Notes:

1. Omitted by Finance Act, 2022dated 30.03.2022 w.e.f. 01.04.2022

2. Substituted by the Finance Act, 2023 dated 01.02.2023 w.e.f 01.04.2023.

for the words

pay the whole

The following shall be substituted namely-

pay or ensure payment of, the whole

3. Omitted by the Finance Act, 2023 dated 01.02.2023 w.e.f 01.04.2023.

4. Inserted by the Finance Act, 2023 dated 01.02.2023 w.e.f 01.04.2023.

5. Inserted byThe Finance Act, 2025dated 29.03.2025.