Comparison of section 476 "Failure to pay tax to credit of Central Government under Chapter XIX-B" between the Income-Tax Act, 2025 (as passed) and the Income-Tax Bill, 2025 (as originally introduced)

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....s appearing in the Income-tax Act, 2025 (final or later text on the cited source). The provision creates a penal offence for failure to remit withholding or other specified taxes to the Central Government. It affects persons required to deduct or ensure payment of tax under Chapter XIX-B and linked notes to section 393; fines and imprisonment are prescribed. Effective date or commencement is Not stated in the document. Background & Scope Statutory hooks: Chapter XIX-B of the Income-tax law, section 393 (Table and associated Notes), and section 397(3)(b) (relating to filing of statements) are expressly referenced. The provision falls under the OFFENCES AND PROSECUTION chapter of the Income-tax enactment. The clause defines a penal offence ....

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....o pay/ensure payment as provided by notes to section 393. The provision applies to 'a person' who is under the statutory obligation - the text in the documents does not limit the class of person beyond that description. Interpretation The text indicates a strict penal approach: failure to transfer collected/deducted tax to government coffers attracts incarceration (minimum three months) and fine, subject to the narrow temporal safe harbour in sub-section (2). The presence of the exception tied to the time prescribed for filing a statement u/s 397(3)(b) suggests legislative intent to avoid penalising technical delays where payment is credited before the statutory filing deadline. The provision's structure separates the act of d....

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....ure of interaction - for example whether other sections provide civil recovery, interest, or additional penalties - is Not stated in the document. The exception in sub-section (2) directly ties the criminal bar to the procedural timeline u/s 397(3)(b), suggesting coordination between filing requirements and criminal liability, but detailed interplay is not set out in the provided text. Differences between Section 476 (Income-tax Act, 2025) and Clause 476 of the Income Tax Bill, 2025 (Old Version) Observed textual differences between the Clause 476 (Old Version) and Section 476 (as in the later source) are limited and primarily editorial, with one noteworthy cross-reference change: * Reference to Notes in section 393(3) - sub-clause (b)(....

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....ce of the temporal safe harbour materially as presented; precise legal effect may depend on interpretation in context, which is Not stated in the document. Practical Implications * Compliance and risk areas: Persons responsible for deducting tax under Chapter XIX-B or for ensuring payment under the referenced Notes to section 393 face criminal exposure (minimum three months' rigorous imprisonment and fine) where remittance to the Central Government is not accomplished within the safe-harbour timeline. The provision places emphasis on timely remittance to avoid penal consequences. * Record-keeping/evidence: Given the exception in sub-section (2), maintaining contemporaneous records showing date of remittance, bank credits to the Cen....