Income-tax Act, 1961Section 271C
- Penalty equal to the TDS not deducted or not paid
- Applies also to winnings in kind and VDA consideration in kind
Applies to FY 2025-26 (AY 2026-27) and earlier years.
IT Act 1961 → 2025 / Section 271C
PenaltiesSection 271C → Section 448
Penalty for failure to deduct TDS
Section 271C of the old Income-tax Act, 1961 · new section 448 under the Income-tax Act, 2025
New reference Section 448 (TCS: 449)
Income-tax Act, 2025Section 448 (TCS: 449)
- Same penalty, now section 448
- Equal to the tax not deducted/paid
- Failure to collect TCS: section 449
Applies from tax year 2026-27 (from 1 April 2026).
What changed
Renumbered.
Practice notes
- 'Reasonable cause' protection (old 273B) continues as section 470.
Frequently asked
What is the penalty for not deducting TDS under the new Income Tax Act 2025?
Section 448: penalty equal to the TDS not deducted or paid.
What is section 271C called in the new Income-tax Act, 2025?
Section 271C of the Income-tax Act, 1961 corresponds to Section 448 (TCS: 449) of the Income-tax Act, 2025, which applies from 1 April 2026 (tax year 2026-27).
What changed in section 271C under the new Income Tax Act?
Renumbered.
Is section 271C still applicable for FY 2025-26?
Yes. Income of FY 2025-26 (AY 2026-27) and earlier years is governed by section 271C of the 1961 Act. Section 448 (TCS: 449) of the 2025 Act applies from tax year 2026-27.