Section 278B → Section 390
Offenses by companies
Quick Answer
Section 278B of the Income Tax Act, 1961 (Offenses by companies) corresponds to Section 390 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective 1st April 2026. Status: Retained.
Sec 278B
Provision Summary
If a company commits an offense, every person in charge (Directors, Managers) is deemed guilty.
Sec 390
Provision Summary
Retained. This is the vicarious liability section.
Key Changes & Highlights
- Independent and Non-Executive directors are generally excluded unless they were actively involved.
Frequently Asked Questions
What does Section 278B of the Income Tax Act 1961 deal with?
Section 278B (Offenses by companies) If a company commits an offense, every person in charge (Directors, Managers) is deemed guilty.
What is the new section number for Section 278B under the Direct Tax Code 2025?
Section 278B of the ITA 1961 maps to Section 390 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective from 1st April 2026.
What is the status of Section 278B under the new tax code?
Section 278B is marked as "Retained" with status "Active". Impact: Critical - Defines who goes to jail in corporate tax crimes.
What are the key changes to Section 278B under DTC 2025?
Independent and Non-Executive directors are generally excluded unless they were actively involved.
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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