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ITA 1961 → DTC 2025Prosecution

Section 276B Section 380

Prosecution for failure to pay TDS

RetainedCritical - Criminal liability for directors and business owners.

Quick Answer

Section 276B of the Income Tax Act, 1961 (Prosecution for failure to pay TDS) corresponds to Section 380 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective 1st April 2026. Status: Retained.

Old Law (ITA 1961)Ch: XXII

Sec 276B

Provision Summary

Imprisonment from 3 months to 7 years for failing to pay TDS (deducted) to the Govt credit.

New Law (DTC 2025)Ch: XXV

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 (Prosecution for failure to pay TDS) Imprisonment from 3 months to 7 years for failing to pay TDS (deducted) to the Govt credit.

What is the new section number for Section 276B under the Direct Tax Code 2025?

Section 276B of the ITA 1961 maps to Section 380 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective from 1st April 2026.

What is the status of Section 276B under the new tax code?

Section 276B is marked as "Retained" with status "Active". Impact: Critical - Criminal liability for directors and business owners.

What are the key changes to Section 276B under DTC 2025?

Guidelines issued to avoid prosecution for small delays if tax is paid with interest voluntarily.

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.

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