New Provision
Section 427, IT Act 2025
Replaces (IT Act 1961)
234E
Chapter
Chapter XVIII — Collection and Recovery of Tax
Effective From
1 April 2026
Statutory Text — Section 427
ithout prejudice to the provisions of this Act, where a person fails to deliver or cause to be delivered a statement within the time prescribed in section 397(3)(b), he shall be liable to pay, by way of fee, a sum of ₹200 for every day during which the failure continues. (2) The amount of fee referred to in sub-section (1) shall,–– (a) not exceed the amount of tax deductible or collectible; and (b) be paid before delivering or causing to be delivered the statement, as per sub-section (1).
Shahi & Co. — Our Understanding
This section falls under Chapter XVIII which deals with collection and recovery of tax — including TDS, advance tax, self-assessment tax, and recovery proceedings.
Practical Note: TDS compliance is one of the most heavily scrutinised areas in income tax. Failure to deduct, short deduction, or late deposit of TDS attracts interest, penalty, and disallowance of the related expenditure.
Shahi & Co., Chartered Accountants
Need guidance on Section 427?
Our Direct Tax team advises individuals, businesses, and start-ups on all provisions of the Income Tax Act, 2025. We help you navigate the transition from the old Act with zero disruption to your compliance calendar.
Consult Our Tax Team →
Disclaimer: This is a reproduction of Section 427 of the Income Tax Act, 2025 (No. 30 of 2025) as published in the Official Gazette of India (CG-DL-E-22082025-265620) for informational and reference purposes only. Shahi & Co., Chartered Accountants makes no warranty as to completeness or accuracy. For the official authenticated text refer to
egazette.gov.in or
incometaxindia.gov.in. This does not constitute legal or tax advice.