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CHAPTER XXII

OFFENCES AND PROSECUTIONS

Failure to pay tax to the credit of Central Government under Chapter XII-D or XVII-B.

276B. [“276B. If a person fails to—

(a) pay to the credit of the Central Government, the tax deducted at source by him as required by or under the provisions of Chapter XVII-B; or

(b) pay tax or ensure payment of tax to the credit of the Central Government, as required by or under—

(i) the proviso to sub-section (1) of section 194S in relation to consideration for transfer of virtual digital asset, excluding such consideration which is wholly in kind; or

(ii) sub-section (2) of section 194BA in relation to winnings, excluding such winnings which are wholly in kind,

he shall be punishable––

(i) with simple imprisonment for a term up to two years, or with fine, or with both, where the amount of such tax exceeds fifty lakh rupees; or

(ii) with simple imprisonment for a term up to six months, or with fine, or with both, where the amount of such tax exceeds ten lakh rupees but does not exceed fifty lakh rupees; or

(iii) with fine, in any other case: 50

Provided that the provisions of this section shall not apply, if the payment referred to in clause (a) has been made to the credit of the Central Government at any time on or before the time prescribed for filing the statement for such payment under sub-section (3) of section 200.]

Notes:

1. Omitted by Finance Act, 2022 dated 30.03.2022 w.e.f. 01.04.2022

2. Omitted by the Finance Act, 2023 dated 01.02.2023 w.e.f 01.04.2023.

3. Substituted by the Finance Act, 2023 dated 01.02.2023 w.e.f 01.04.2023.

for the words

the tax deducted

The following shall be substituted namely-

pay to the credit of the Central Government, the tax deducted

4. Substituted by the Finance Act, 2023 dated 01.02.2023 w.e.f 01.04.2023.

for the Clause(b)

(b) the tax payable by him, as required by or under—

(i) sub-section (2) of section 115-O; or

(ii) the ¹[second] proviso to section 194B,

The following clause shall be substituted namely-

(b) “pay tax or ensure payment of tax to the credit of the Central Government, as required by or under––

(i) sub-section (2) of section 115-O;

(ii) the proviso to section 194B;

(iii) the first proviso to sub-section (1) of section 194R;

(iv) the proviso to sub-section (1) of section 194S; or

5. Inserted by the Finance Act, 2023 dated 01.02.2023 w.e.f 01.07.2023.

6. Inserted by Finance Bill 2024 dated 07.08.2024 w.e.f 01.10.2024

7. Substituted by the Finance bill 2026 dated 01.02.2026 w.e.f 01.03.2026

for the word ,

If a person fails to ²[pay to the credit of the Central Government],—

(a) ³[pay to the credit of the Central Government, the tax deducted] at source by him as required by or under the provisions of Chapter XVII-B; or

⁴[(b) “pay tax or ensure payment of tax to the credit of the Central Government, as required by or under––

(i) sub-section (2) of section 115-O;

(ii) the proviso to section 194B;

(iii) the first proviso to sub-section (1) of section 194R;

(iv) the proviso to sub-section (1) of section 194S; or]

⁵[(v) sub-section (2) of section 194BA,]

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.

^6. [Provided that the provisions of this section shall not apply if the payment referred to in clause (a) has been made to the credit of the Central Government at any time on or before the time prescribed for filing the statement for such payment under sub-section (3) of section 200]

shall be substituted namly

“276B. If a person fails to—