Section 477 — Failure to Pay TCS to Credit of Central Government | ITA 2025

Section 477 of the Income-tax Act, 2025 corresponds to s. 276 BB of the Income-tax Act, 1961. STATUTORY ARCHITECTURE Imprisonment 3 months to 7 years with fine for failure to pay collected TCS u/s 394 [206C] to Central Government. Mirror…

Section 477 — - FAILURE TO PAY TCS TO CREDIT OF CENTRAL GOVERNMENT

Section 477 of the Income-tax Act, 2025 corresponds to s. 276BB of the Income-tax Act, 1961.

Statutory text — Income-tax Act, 2025

23[(1) If a person fails to pay the tax collected by him to the credit of the Central Government, as required under section 397(3)(a), he shall be punishable––

(a) 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

22. Substituted by the Finance Act, 2026, w.e.f. 1-4-2026. Prior to its substitution, sub-section

(1) read as under : “(1) If a person fails to—

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

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

(i) Note 2 below the Table in section 393(3); or

(ii) Note 6 to section 393(1) (Table: Sl. No. 8), 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.”

23. Substituted by the Finance Act, 2026, w.e.f. 1-4-2026. Prior to its substitution, sub-section

(1) read as under : “(1) If a person fails to pay the tax collected by him to the credit of the Central Government, as required under section 397(3)(a), 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.”

(b) 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

(c) with fine, in any other case.]

(2) The provisions of this section shall not apply if the payment of the tax collected at source has been made to the credit of the Central Government on or before the time prescribed for filing the statement under section 397(3)(b) in respect of such payment. Wilful attempt to evade tax, etc.

STATUTORY ARCHITECTURE

Imprisonment 3 months to 7 years with fine for failure to pay collected TCS u/s 394 [206C] to Central Government. Mirror of s. 476 [276B].

PRACTITIONER PLANNING NOTES

Same compounding regime; principal officer attribution.

CROSS-REFERENCES

s. 491 [279] -- sanction and compounding.
s. 486 [278AA] -- reasonable cause.
s. 487 [278B] -- offences by companies.
s. 490 [278E] -- presumption of culpable mental state.

← All sections (537)Act 2025 hub

INCOME-TAX ACT, 2025	INCOME-TAX ACT, 1961
2025 provision	1961 counterpart
s. 477 -- Failure to Pay TCS to Credit of Central Government	s. 276BB