Penalty and Prosecution for failure to collect tax at source [ Section 271CA and section 276BB ]

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....faults occurring on or after that date. The amendment by the Finance Act, 2025, shifting the authority to the Assessing Officer, is prospective and applies to penalties imposed on or after April 1, 2025, regardless of the period of default. This distinction is important for determining the competent authority in ongoing or future proceedings. * If any person who is required to collect tax at sou....

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....y under sub-section (1), on or after the 1st day of April, 2025, shall be imposed by the Assessing Officer. [ Inserted vide Section 83 of the Finance Act, 2025 ] * Upto 31.03.2025 - Originally, the power to impose a penalty u/s 271CA was vested in the Joint Commissioner of Income-tax.  Prosecution [ Section 276BB ] * If a person fails to pay to the credit of....

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....ncome-tax Act provides that no penalty shall be imposable on a person for any failure referred to in certain specified sections, including Section 271CA, if he proves that there was reasonable cause for the failure. This provision is an important safeguard against the mechanical or unjust imposition of penalties. * Section 271CA (TCS penalty) is analogous to Section 271C, which deals with penalt....