{"id":1771,"date":"2025-03-29T13:06:04","date_gmt":"2025-03-29T07:36:04","guid":{"rendered":"https:\/\/www.caclubindia.com\/guide\/?p=1771"},"modified":"2025-06-26T15:55:42","modified_gmt":"2025-06-26T10:25:42","slug":"section-271c-of-income-tax-act","status":"publish","type":"post","link":"https:\/\/www.caclubindia.com\/guide\/section-271c-of-income-tax-act\/","title":{"rendered":"Section 271C: AO to Replace Joint Commissioner from April 2025"},"content":{"rendered":"\n
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As per Section 271C of the Income Tax Act 1961, states that the \u201cPenalty for failure to deduct tax at source\u201d-<\/p>\n\n\n\n

(1) If any person fails to\u2014<\/p>\n\n\n\n

(a) deduct the whole or any part of the tax as required by or under the provisions of Chapter XVII-B; or<\/p>\n\n\n\n

(b) pay the whole or any part of the tax as required by or under-<\/p>\n\n\n\n

(i) sub-section (2) of section 115-O; or<\/p>\n\n\n\n

(ii) the second proviso to section 194B,<\/p>\n\n\n\n

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 as aforesaid.]<\/p>\n\n\n\n

(2) Any penalty imposable under sub-section (1) shall be imposed by the Joint Commissioner.<\/p>\n\n\n\n

In short, Section 271C of the Income Tax Act of 1961, pertains to penalties imposed for not deducting tax at source (TDS) or for failing to remit the TDS to the government. This section is vital in promoting adherence to tax responsibilities and deterring tax evasion.<\/p>\n\n\n\n

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