Amendment of section 276B.
119. In section 276B of the Income-tax Act,––
(A) in the opening portion, the words “pay to the credit of the Central Government” shall be omitted;
(B) in clause (a), for the words “the tax deducted”, the words “pay to the credit of the Central Government, the tax deducted” shall be substituted;
(C) for clause (b), the following clause shall be substituted, namely:––
‘(b) “pay tax or ensure payment of tax to the credit of the Central Government, as required by or under––
(i) sub-section (2) of section 115-O;
(ii) the proviso to section 194B;
(iii) the first proviso to sub-section (1) of section 194R;
(iv) the proviso to sub-section (1) of section 194S; or’;
(D) after sub-clause (iv) of clause (b) as substituted by the Finance Act, 2023, the following sub-clause shall be inserted with effect from the 1st day of July, 2023, namely:––
“(v) sub-section (2) of section 194BA,”.
Notes on Clauses:
Clause 119 of the Bill seeks to amend the section 276B of the Income-tax Act relating to failure to pay tax to the credit of Central Government under Chapter XII-D or XVII-B.
It is proposed to amend clause (a) of the said section so as to make it applicable if a person fails to pay to the credit of the Central Government the tax deducted at source by him as required by or under the provisions of Chapter XVII-B.
It is further proposed to substitute clause (b) of the said section to provide that failure to pay tax or ensure payment of tax, to the credit of the Central Government as required by or under sub-section (2) of section 115-O, the proviso to section 194B, the first proviso to sub-section (1) of section 194R or the proviso to sub-section (1) of section 194S shall be eligible for initiating proceedings under the section.
These amendments will take effect from 1st April, 2023.
It is also proposed to provide in the said clause that failure to pay tax or ensure payment of tax, to the credit of Central Government as required under sub-section (2) of section 194BA shall be eligible for initiating proceedings under that section.
This amendment will take effect from 1st July, 2023.
