Section 276B → Section 380
Prosecution for failure to pay TDS
Quick Answer
Section 276B of the Income Tax Act, 1961 (Prosecution for failure to pay TDS) corresponds to Section 380 of the Income-tax Act, 2025, effective 1st April 2026. Status: Retained.
What changed for Section 276B
Section 276B of the 1961 Act sets out the rules on prosecution for failure to pay TDS. Imprisonment from 3 months to 7 years for failing to pay TDS (deducted) to the Govt credit.
The new code maps this to Section 380: the provision is retained and renumbered as Section 380 of the Income-tax Act, 2025, applying from 1st April 2026. Retained. Emphasizes that TDS is public money held in trust.
On the ground, changes to Section 276B carry a Critical impact. Criminal liability for directors and business owners.
Sec 276B
Provision Summary
Imprisonment from 3 months to 7 years for failing to pay TDS (deducted) to the Govt credit.
Sec 380
Provision Summary
Retained. Emphasizes that TDS is public money held in trust.
Key Changes & Highlights
- Guidelines issued to avoid prosecution for small delays if tax is paid with interest voluntarily.
Related Sections
Frequently Asked Questions
What does Section 276B of the Income Tax Act 1961 deal with?
Section 276B of the Income Tax Act, 1961 covers prosecution for failure to pay TDS. Imprisonment from 3 months to 7 years for failing to pay TDS (deducted) to the Govt credit.
Where does Section 276B of the ITA 1961 go under the Income-tax Act, 2025?
Section 276B of the Income Tax Act, 1961 maps to Section 380 of the Income-tax Act, 2025, effective 1st April 2026 (status: Retained). Retained. Emphasizes that TDS is public money held in trust.
Why does the change to Section 276B matter for taxpayers?
The transition impact for Section 276B is rated Critical. Criminal liability for directors and business owners.
What are the key changes to Section 276B under the Income-tax Act, 2025?
Guidelines issued to avoid prosecution for small delays if tax is paid with interest voluntarily. These points are specific to Section 276B (Prosecution for failure to pay TDS).
Disclaimer: This mapping of Section 276B (Prosecution for failure to pay TDS) to Section 380 of the Income-tax Act, 2025 is for educational and reference purposes only, based on publicly available drafts and circulars. As Section 276B is currently marked Retained, always confirm its treatment with a qualified Chartered Accountant before filing or making compliance decisions.
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