Quick Summary
Amendment in the provisions of section 179 of the Act 1. Section 179 of the Act contains provisions which enables Income tax authorities to recover tax due from a private company from its directors, under certain circumstances where such tax cannot be recovered from the company itself. The section makes each director of the private company jointly and severally liable for the payment of such tax with certain conditions. However, the title of the section inadvertently refers to the liability o
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FAQ :
The title of Section 179 has been amended to 'Liability of directors of private company' to accurately reflect its provisions regarding director liability for unpaid company tax.
No, the amendment clarifies that the director's liability under Section 179 is not conditional upon the company being in liquidation, and the section itself does not reference liquidation.
The expression 'tax due' now includes penalty, interest, fees, and any other sum payable under the Act, providing greater clarity and aiming to avoid litigation.
These amendments will take effect from 1st April 2022.
Each director of the private company is jointly and severally liable for the payment of such tax, subject to certain conditions.
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