Union Budget 2025-26 (Full) + Finance Bill, 2025

IV. Exemption from prosecution for delayed payment of TCS in certain cases

Section 276BB of the Act provides for prosecution in case of failure to pay the tax collected at source to the credit of Central Government. The provision of the said section states that if a person fails to pay to the credit of the Central Government, the tax collected by him as required under the provisions of section 206C of the Act, he shall be punishable with rigorous imprisonment for a term which shall not be less than three months but which may extend to seven years and with fine.

2. It is proposed to amend section 276BB of the Act to provide that the prosecution shall not be instituted against a person covered under the said section, if the payment of the tax collected at source has been made to the credit of the Central Government at any time on or before the time prescribed for filing the quarterly statement under proviso to sub-section (3) of section 206C of the Act in respect of such payment.

3. This amendment will take effect from the 1st day of April, 2025.

[Clause 84]

 

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Full Text:

Union Budget 2025-26 (Full) + Finance Bill, 2025

Exemption from prosecution for delayed TCS payment where remittance occurs by prescribed quarterly statement deadline. Amendment provides that prosecution for failure to pay tax collected at source shall not be instituted if payment has been made to the Central Government on or before the time prescribed for filing the quarterly statement under the proviso to sub section (3) of the tax collected at source provision, thereby conditioning criminal liability on meeting the quarterly statement remittance deadline.