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Section 271C: Penalty for failure to deduct tax at source

The Income-tax Act, 1961Central Act · Act 43 of 1961

Repealed. This text is published for reference. It is not in force, and it should not be relied on as current law without checking what replaced it. Repealed by the Income-tax Act, 2025, with effect from 1 April 2026

Penalty for failure to deduct tax at source.

(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) 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;

(ii) the proviso to section 194B;

(iii) the first proviso to sub-section (1) of section 194R; or

(iv) the proviso to sub-section (1) of section 194S; or

(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 or ensure payment of, as aforesaid.

(2) Any penalty imposable under sub-section (1) shall be imposed by the Joint Commissioner:

[Provided that any penalty under sub-section (1) on or after the 1st day of April, 2025, shall be imposed by the Assessing Officer.]

Where this provision sits

ActThe Income-tax Act, 1961
Section271C
Marginal notePenalty for failure to deduct tax at source
JurisdictionCentral
StatusRepealed
Judgments citing it25

How this provision has been amended

Taken from the footnotes printed with the provision by the source. Where a footnote names the amending instrument, it is quoted as printed.

  • inserted, Act No. 7 of 2025. Ins. by Act No. 7 of 2025, w.e.f. 1-4-2025.

Judgments that turned on this provision

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