Income Tax Bill 2025: Clause 477 imposes imprisonment for failing to remit tax collected under section 394.
Clause 477 of the Income Tax Bill, 2025, addresses the failure to remit tax collected at source to the Central Government. If a person fails to pay the collected tax as required under section 394, they face rigorous imprisonment ranging from three months to seven years and may also incur a fine. However, this provision does not apply if the tax payment is made to the Central Government by the deadline for filing the statement under section 397(3)(b).