TaxTMI 
TaxTMI 
Penalty and Prosecution for failure to deduct tax at source [ Section 271C and section 276B]
X X X X Extracts X X X X
X X X X Extracts X X X X
....or specified provisions. The term "person" is defined broadly in Section 2(31) of the Act to include individuals, companies, firms, associations of persons, and others. Thus, the obligation to deduct or pay TDS and the corresponding liability u/s 271C is not limited to corporate entities but extends to all categories of taxpayers. The provision is triggered in two principal scenarios: * Failure ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....s a wide array of payments, including but not limited to: * Salaries (Section 192) * Interest (Section 194A) * Winnings from lotteries and games (Section 194B) * Payments to contractors (Section 194C) * Rent (Section 194I) * Fees for professional or technical services (Section 194J) The provision is triggered irrespective of the quantum of tax involved-even a partial failure attracts....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rom lotteries or games, especially where winnings are wholly or partly in kind) * Section 194BA: Failure to ensure payment of tax in respect of the winnings from online game in kind, whether wholly or partly, where cash part is not sufficient to meet the liability for deduction of tax in respect of whole winnings from online games as referred to in Section 194BA(2); (i.e. TDS on winnin....
X X X X Extracts X X X X
X X X X Extracts X X X X
....arios where the payer may not directly deduct TDS but must ensure that tax is paid before releasing payments in kind or non-cash transactions. Quantum of Penalty * 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. [ Section 271C(1) ] Authority Empowered to Impose P....