Section 179 → Section 195
Liability of directors of private company
Quick Answer
Section 179 of the Income Tax Act, 1961 (Liability of directors of private company) corresponds to Section 195 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective 1st April 2026. Status: Retained.
Sec 179
Provision Summary
Directors of a private company are personally liable for the company's tax dues if it cannot be recovered from the company.
Sec 195
Provision Summary
Retained. Piercing the corporate veil for tax recovery.
Key Changes & Highlights
- Burden of proof is on the Director to show the non-recovery was not due to their neglect or breach of duty.
Frequently Asked Questions
What does Section 179 of the Income Tax Act 1961 deal with?
Section 179 (Liability of directors of private company) Directors of a private company are personally liable for the company's tax dues if it cannot be recovered from the company.
What is the new section number for Section 179 under the Direct Tax Code 2025?
Section 179 of the ITA 1961 maps to Section 195 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective from 1st April 2026.
What is the status of Section 179 under the new tax code?
Section 179 is marked as "Retained" with status "Active". Impact: High - Significant personal risk for directors of private limited companies.
What are the key changes to Section 179 under DTC 2025?
Burden of proof is on the Director to show the non-recovery was not due to their neglect or breach of duty.
Disclaimer: This page is for educational and reference purposes only. Section mappings are based on publicly available drafts and circulars. Always consult a qualified Chartered Accountant before filing or making compliance decisions under the Direct Tax Code 2025.
Need professional help on Section 179?
Compare trusted providers — both offer DTC 2025-ready CA services.
*Affiliate links — we may earn a small commission at no extra cost to you. Disclosure.
Want to calculate tax on this section?