Here’s a structured table summarizing the penal provisions related to Tax Collected at Source (TCS) under Sections 271, 272, and 276 of the Income Tax Act, 1961, based on the available search results and relevant legal provisions:
Table: Penal Provisions for TCS Non-Compliance
| SECTION | NATURE OF DEFAULT | PENALTY/CONSEQUENCE | CONDITIONS/EXCEPTIONS |
| Section 271CA | Failure to collect TCS under Section 206C | Amount equal to TCS not collected | Applies if seller fails to collect TCS despite being liable . |
| Section 271H | Incorrect/fraudulent TCS return filing (e.g., Form 27EQ) | ₹10,000 – ₹1,00,000 | Penalty waived if corrected before notice issuance . |
| Section 272A(2) | Failure to issue TCS certificate (Form 27D) | ₹500/day (max. TCS amount) | Applies until certificate is issued . |
| Section 276BB | Willful failure to deposit TCS after collection | Imprisonment: 3 months – 7 years + Fine | Prosecution requires proof of intent . |
| Section 206C(7) | Late deposit of TCS after collection | Interest @ 1.5% per month | From due date (7th of next month) to actual deposit. |
| Section 206C(6A) | Penalty under Section 221 for TCS defaults | Up to 100% of TCS amount | Overridden by Section 271CA for non-collection. |
Key Notes:
- Section 271CAspecifically targets TCS collection failures, while Section 271H addresses filing inaccuracies.
- Section 276BBis a criminal provision requiring mens rea (willful intent) for prosecution.
- Interest under Section 206C(7) is automatic for late deposits, independent of penalties
