Section 276BB Amended: Exemption from Prosecution for Certain Delayed TCS Payments

Last updated: 04 February 2025

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A new amendment to Section 276BB of the Act will provide an exemption from prosecution for individuals who delay their Tax Collected at Source (TCS) payments. This exemption applies if the TCS payment is made by the deadline for filing the quarterly statement under Section 206C. The change comes into effect from April 1, 2025.

Exemption from prosecution for delayed payment of TCS in certain cases

Section 276BB of the Act provides for prosecution in case of failure to pay the tax collected at source to the credit of Central Government. The provision of the said section states that if a person fails to pay to the credit of the Central Government, the tax collected by him as required under the provisions of section 206C of the Act, he shall be punishable with rigorous imprisonment for a term which shall not be less than three months but which may extend to seven years and with fine.

TCS Payment Delay: New Exemption from Prosecution

2. It is proposed to amend section 276BB of the Act to provide that the prosecution shall not be instituted against a person covered under the said section, if the payment of the tax collected at source has been made to the credit of the Central Government at any time on or before the time prescribed for filing the quarterly statement under proviso to sub-section (3) of section 206C of the Act in respect of such payment.

3. This amendment will take effect from the 1st day of April, 2025.

[Clause 84]

FAQ :

Section 276BB of the Act outlines the prosecution penalties for failing to pay tax collected at source (TCS) to the Central Government.

Failure to pay TCS can result in rigorous imprisonment for a term of at least three months, extending up to seven years, along with a fine.

The amendment proposes that prosecution will not be initiated against a person if the delayed TCS payment is made by the deadline for filing the quarterly statement under Section 206C.

This amendment will be effective from the 1st day of April, 2025.

The amendment provides an exemption from prosecution for delayed TCS payments if the payment is made by the prescribed time for filing the quarterly statement under Section 206C.

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