{"id":2235,"date":"2025-05-30T17:55:21","date_gmt":"2025-05-30T12:25:21","guid":{"rendered":"https:\/\/www.caclubindia.com\/guide\/?p=2235"},"modified":"2025-06-26T15:54:34","modified_gmt":"2025-06-26T10:24:34","slug":"section-276bb-failure-to-pay-the-tcs","status":"publish","type":"post","link":"https:\/\/www.caclubindia.com\/guide\/section-276bb-failure-to-pay-the-tcs\/","title":{"rendered":"Relief from Prosecution for Late TCS Payment From FY 2025-26"},"content":{"rendered":"\n<p>Under Indian tax laws, Tax Collected at Source (TCS) provisions require certain sellers to collect tax from buyers at the time of sale.<\/p>\n\n\n\n<p>The Finance Bill 2025 has introduced a significant relief measure for taxpayers who collected Tax at Source (TCS) but failed to deposit it on time.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1000\" height=\"630\" src=\"https:\/\/www.caclubindia.com\/guide\/wp-content\/uploads\/2025\/05\/Section-276BB-Amendment.png\" alt=\"\" class=\"wp-image-2236\" srcset=\"https:\/\/www.caclubindia.com\/guide\/wp-content\/uploads\/2025\/05\/Section-276BB-Amendment.png 1000w, https:\/\/www.caclubindia.com\/guide\/wp-content\/uploads\/2025\/05\/Section-276BB-Amendment-300x189.png 300w, https:\/\/www.caclubindia.com\/guide\/wp-content\/uploads\/2025\/05\/Section-276BB-Amendment-768x484.png 768w\" sizes=\"auto, (max-width: 1000px) 100vw, 1000px\" \/><\/figure>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\r\n<div class=\"ez-toc-title-container\">\r\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\r\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\r\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.caclubindia.com\/guide\/section-276bb-failure-to-pay-the-tcs\/#Key_Points_About_TCS_Payment_Relief\" >Key Points About TCS Payment Relief<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.caclubindia.com\/guide\/section-276bb-failure-to-pay-the-tcs\/#Prosecution_Relief\" >Prosecution Relief<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.caclubindia.com\/guide\/section-276bb-failure-to-pay-the-tcs\/#Conditions_for_Relief\" >Conditions for Relief<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.caclubindia.com\/guide\/section-276bb-failure-to-pay-the-tcs\/#Recent_Developments\" >Recent Developments<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.caclubindia.com\/guide\/section-276bb-failure-to-pay-the-tcs\/#Other_Penalties_for_Late_TCS_Compliance_which_still_apply\" >Other Penalties for Late TCS Compliance (which still apply)<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.caclubindia.com\/guide\/section-276bb-failure-to-pay-the-tcs\/#Late_Filing_Fee_Section_234E\" >Late Filing Fee (Section 234E)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.caclubindia.com\/guide\/section-276bb-failure-to-pay-the-tcs\/#Penalty_for_Non-Filing_or_Incorrect_Filing_Section_271H\" >Penalty for Non-Filing or Incorrect Filing (Section 271H)<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.caclubindia.com\/guide\/section-276bb-failure-to-pay-the-tcs\/#TCS_Return_Form_27EQ_Due_Dates_Quarterly\" >TCS Return (Form 27EQ) Due Dates (Quarterly)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.caclubindia.com\/guide\/section-276bb-failure-to-pay-the-tcs\/#Recommended_Actions\" >Recommended Actions<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.caclubindia.com\/guide\/section-276bb-failure-to-pay-the-tcs\/#FAQs\" >FAQs<\/a><\/li><\/ul><\/nav><\/div>\r\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Key_Points_About_TCS_Payment_Relief\"><\/span>Key Points About TCS Payment Relief<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Prosecution_Relief\"><\/span>Prosecution Relief<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The Income Tax Department may provide relief from prosecution for delayed TCS payments if:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The delay was due to reasonable cause.<\/li>\n\n\n\n<li>The taxpayer voluntarily discloses the default.<\/li>\n\n\n\n<li>The taxpayer pays the outstanding amount with applicable interest.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conditions_for_Relief\"><\/span>Conditions for Relief<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The taxpayer must file all required TCS returns<\/li>\n\n\n\n<li>Any short payment must be rectified with interest (currently 1% per month under Section 206C(7))<\/li>\n\n\n\n<li>The delay should not be willful or indicative of tax evasion<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Recent_Developments\"><\/span>Recent Developments<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The Finance Act 2023 made several changes to TCS provisions<\/li>\n\n\n\n<li>New TCS rates and rules apply from October 1, 2023, for certain transactions<\/li>\n\n\n\n<li>The CBDT may issue specific circulars regarding prosecution relief for FY 2025-26<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Other_Penalties_for_Late_TCS_Compliance_which_still_apply\"><\/span>Other Penalties for Late TCS Compliance (which still apply)<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Late_Filing_Fee_Section_234E\"><\/span>Late Filing Fee (Section 234E)<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>A <strong>fee of \u20b9200 per day<\/strong> is charged for late filing of TCS returns, capped to the total TCS amount.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Penalty_for_Non-Filing_or_Incorrect_Filing_Section_271H\"><\/span>Penalty for Non-Filing or Incorrect Filing (Section 271H)<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>A <strong>penalty ranging from \u20b910,000 to \u20b91,00,000<\/strong> may be imposed for failure to file TCS statements within the prescribed time limits or for furnishing incorrect information.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"TCS_Return_Form_27EQ_Due_Dates_Quarterly\"><\/span>TCS Return (Form 27EQ) Due Dates (Quarterly)<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Q1 (April &#8211; June 2025): <\/strong>July 15, 2025<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Q2 (July &#8211; September 2025): <\/strong>October 15, 2025<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Q3 (October &#8211; December 2025): <\/strong>January 15, 2026<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Q4 (January &#8211; March 2026): <\/strong>May 15, 2026<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Recommended_Actions\"><\/span>Recommended Actions<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Pay any outstanding TCS amounts immediately with applicable interest<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>File revised returns if previous filings were incorrect<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Maintain proper documentation showing reasonable cause for any delay<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Consult a tax professional for case-specific advice<\/li>\n<\/ul>\n\n\n\n<p><strong><a href=\"https:\/\/www.caclubindia.com\/guide\/tds-tcs-non-filers-rule\/\">Click Here<\/a> To<\/strong> <strong>Know About TDS TCS Non-Filers Rule w.e.f 1st April 2025<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"FAQs\"><\/span>FAQs<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1748605570231\"><strong class=\"schema-faq-question\">Is the delay in TCS payment decriminalised?<\/strong> <p class=\"schema-faq-answer\">After the decriminalisation of delay in payment of TDS, delay in TCS payments has now been decriminalised. Encouraging voluntary compliance, the Budget extends the time limit to file updated returns for any assessment year, from the current limit of two years, to four years.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1748605597712\"><strong class=\"schema-faq-question\">What happens if TCS is collected but not paid?<\/strong> <p class=\"schema-faq-answer\">In case the tax collector who is accountable for collecting the tax and depositing it to the government fails to collect the tax or, after collecting, does not pay it to the government within the stipulated due dates, then he\/she will be liable to pay interest of 1% per month or a part of the month.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1748605613424\"><strong class=\"schema-faq-question\">What are the rules for TCS deduction?<\/strong> <p class=\"schema-faq-answer\">Under section 206C (1H) of the Income Tax Act, TCS is mandated if the seller&#8217;s annual turnover exceeds Rs. 10 crore. Sellers must also deduct TCS if the aggregate sale amount received from a single buyer exceeds Rs. 50 lakh in a financial year.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1748605629875\"><strong class=\"schema-faq-question\">What is the difference between late payment and late deduction?<\/strong> <p class=\"schema-faq-answer\"><strong>Late Deduction<\/strong> occurs when TDS (Tax Deducted at Source) is deducted after the payment has been made to the deductee. This can happen due to an error in recording the transaction or an actual delay in deduction.<br\/><strong>Late Payment<\/strong> arises when the deducted tax amount is not deposited to the government within the stipulated due date, which is generally within seven days from the end of the month in which the tax was deducted.<\/p> <\/div> <\/div>\n","protected":false},"excerpt":{"rendered":"<p>Under Indian tax laws, Tax Collected at Source (TCS) provisions require certain sellers to collect tax from buyers at the [&hellip;]<\/p>\n","protected":false},"author":6,"featured_media":2237,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center 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center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[4],"tags":[],"class_list":["post-2235","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-income-tax"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\r\n<title>Relief from Prosecution for Late TCS Payment From FY 2025-26 - Tax Guide<\/title>\r\n<meta name=\"description\" content=\"The Finance Bill 2025 has introduced a significant relief measure for taxpayers who TCS but failed to deposit it on time.\" \/>\r\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\r\n<link rel=\"canonical\" href=\"https:\/\/www.caclubindia.com\/guide\/section-276bb-failure-to-pay-the-tcs\/\" 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