Income Tax Act, 2025  ·  Chapter XX — Penalties  ·  Section 448

Section 448
Penalty for failure to deduct tax at source

IT Act 2025 Chapter XX Effective 1 April 2026 Old: 271C
New Provision
Section 448, IT Act 2025
Replaces (IT Act 1961)
271C
Chapter
Chapter XX — Penalties
Effective From
1 April 2026
Statutory Text — Section 448

any person fails to— (a) deduct the whole or any part of 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 2 below the 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.

Shahi & Co. — Our Understanding
This section falls under Chapter XX which prescribes penalties for various non-compliances under the Act.
Practical Note: Penalties under the Income Tax Act can be significant — often ranging from 50% to 200% of the tax amount involved. Voluntary disclosure and prompt correction of errors significantly reduces penalty exposure.
Shahi & Co., Chartered Accountants
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Disclaimer: This is a reproduction of Section 448 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.