Section 271C → Section 350
Penalty for failure to deduct tax at source (TDS)
Quick Answer
Section 271C of the Income Tax Act, 1961 (Penalty for failure to deduct tax at source (TDS)) corresponds to Section 350 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective 1st April 2026. Status: Retained.
Sec 271C
Provision Summary
Penalty equal to the amount of TDS not deducted.
Sec 350
Provision Summary
Retained. This is in addition to the interest under 201(1A).
Key Changes & Highlights
- Includes penalties for failure to pay TDS on virtual digital assets (194S).
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Frequently Asked Questions
What does Section 271C of the Income Tax Act 1961 deal with?
Section 271C (Penalty for failure to deduct tax at source (TDS)) Penalty equal to the amount of TDS not deducted.
What is the new section number for Section 271C under the Direct Tax Code 2025?
Section 271C of the ITA 1961 maps to Section 350 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective from 1st April 2026.
What is the status of Section 271C under the new tax code?
Section 271C is marked as "Retained" with status "Active". Impact: High - Major risk for businesses with large vendor payouts.
What are the key changes to Section 271C under DTC 2025?
Includes penalties for failure to pay TDS on virtual digital assets (194S).
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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