Section 271C - Penalty for failure to deduct tax at source - Income-tax Act, 1961

1 [Penalty for failure to deduct tax at source. 271C. 2 [(1) If any person fails to- ( a ) deduct the whole or any part of the tax as required by or under the provisions of Chapter XVII-B; or ( b ) 6 [ pay or ensure payment of, the whole ] or any part of the tax as required by or under- ( i ) sub-section (2) of section 115-O; 7 [ **** ] ( ii ) the 5 [ **** ] proviso to section 194B, 8 [ (iii) the first proviso to sub-section (1) of section 194R; or (iv) the proviso to sub-section (1) of section 194S; or ] 9 [ (v) sub-section (2) of section 194BA, ] 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 10 [ or ensure payment of, ] as aforesaid.] 3 [(2) Any penalty imposable under sub-section (1) shall be imposed by the 4 [Joint] Commissioner.] --------------------- Notes :- 1. Inserted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989. 2. Substituted by the Finance Act, 1997, w.e.f. 1-6-1997. Prior to its substitution, sub-section (1), as inserted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989 and amended by the Finance Act, 1990, w.e.f. 1-4-1990, read as under: (1) If any person fails to deduct the whole or any part of the tax as required by or under the provisions of Chapter XVII-B, he shall be liable to pay, by way of penalty, a sum equal to the amount of the tax which he failed to deduct as aforesaid. 3. Inserted by the Finance Act, 1990, w.e.f. 1-4-1990. 4. Substituted for Deputy by the Finance (No. 2) Act, 1998, w.e.f. 1-10-1998. 5. Omitted vide Finance Act, 2022 w.e.f. 01-04-2022 before it was read as second 6. Substituted vide THE FINANCE ACT, 2023 dated 31-03-2023 w.e.f. 01-04-2023 before it was read as, pay the whole 7. Omitted vide THE FINANCE ACT, 2023 dated 31-03-2023 w.e.f. 01-04-2023 before it was read as, or 8. Inserted vide THE FINANCE ACT, 2023 dated 31-03-2023 w.e.f. 01-04-2023 9. Inserted vide THE FINANCE ACT, 2023 dated 31-03-2023 w.e.f. 01-07-2023 10. Inserted vide THE FINANCE ACT, 2023 dated 31-03-2023 w.e.f. 01-04-2023