Income Tax Act 2025: Section 448 for Tax Year 2025-26

Penalty for failure to deduct/pay tax under Section 448(1) of Income Tax Act 2025 equals the amount of tax not deducted/paid as per Chapter XIX-B or Section 393.

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Penalty for failure to deduct tax at source

[As per the Income Tax Act, 2025 (this Act) w.e.f. 1st April, 2026.]

Section 448(1) of Income Tax Act 2025

(1) If any person fails to—

(a) deduct the whole or in part, the tax as required under Chapter XIX-B; or

(b) pay or ensure the payment of, the whole or any part of the tax as required by or under—
(i) Note 3 in Table in section 393(3); or
(ii) Note 6 to section 393(1) (Table: Sl. No. 8),

then, the Assessing Officer may impose on him, a penalty equal to the tax which such person failed to deduct or pay or ensure payment of, as aforesaid.


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