Section 276BB of the Income-tax Act, 1961, deals with prosecution for failure to deposit Tax Collected at Source (TCS) with the Central Government. The Finance Bill 2025 introduces an amendment providing relief to taxpayers. Under the revised provision, prosecution will not be initiated if the taxpayer deposits TCS before the prescribed deadline for filing the TCS statement under Section 206C(3). However, if the TCS remains unpaid beyond this deadline, the existing prosecution provisions under Section 276BB will continue to apply. This amendment aims to provide taxpayers with a chance to comply without facing legal consequences, as long as the payment is made within the stipulated timeframe.
Page Contents
- FAQs Budget 2025: Exemption from prosecution for delayed payment of TCS
- Q.1 What is section 276BB of the Income-tax Act, 1961?
- Q.2 What amendment has been made in section 276BB of the Income-tax Act, 1961 in Finance Bill 2025?
- Q.3 What happens if person does not pay TCS even after expiry of time prescribed for filing the TCS statement under proviso to 206C (3) of the Income-tax Act, 1961?
- Q.4 What is the relaxation provided to the taxpayer through the amendment in section 276BB of the Income-tax Act, 1961 in Finance Bill 2025?
FAQs Budget 2025: Exemption from prosecution for delayed payment of TCS
Q.1 What is section 276BB of the Income-tax Act, 1961?
Ans. Section 276BB of the Income-tax Act, 1961 provides for prosecution in case of failure to pay the tax collected at source to the credit of Central Government.
Q.2 What amendment has been made in section 276BB of the Income-tax Act, 1961 in Finance Bill 2025?
Ans. Section 276BB of the Income-tax Act, 1961 has been amended to provide that prosecution shall not be instituted if the person has paid TCS to the credit of the Central Government at any time on or before the time prescribed for filing the statement under proviso to 206C (3) in respect of such payment.
Q.3 What happens if person does not pay TCS even after expiry of time prescribed for filing the TCS statement under proviso to 206C (3) of the Income-tax Act, 1961?
Ans. The present provisions of section 276BB of the Income Tax Act,1961 shall continue to apply.
Q.4 What is the relaxation provided to the taxpayer through the amendment in section 276BB of the Income-tax Act, 1961 in Finance Bill 2025?
Ans. Section 276BB of the Income-tax Act, 1961 has been amended to provide the relaxation from prosecution.
The prosecution shall not be instituted if the person has paid TCS to the credit of the Central Government at any time on or before the time prescribed for filing the statement under proviso to 206C (3) of the Income-tax Act, 1961 in respect of such payment.
