Income Tax

CBDT empowered to waive TDS default penalty 271C 271CA for failure to deduct or collect tax at source to reduce the genuine hardship

CBDT empowered to waive TDS  default penalty 271C 271CA  for failure to deduct or collect tax at source to reduce the genuine hardship

Budget 2017-18 : CBDT empowered to issue directions in respect of penalty for failure to deduct or collect tax at source

Existing provision of clause (a) of sub-section (2) of section 119 empowers the Board to issue orders setting forth directions or instructions (not being prejudicial to assessees) to be followed by subordinate authorities in the work relating to assessment or collection of revenue or the initiation of proceedings for the imposition of penalties.

In order to reduce the genuine hardship which may be faced by a person responsible for deduction and collection of tax at source due to levy of penalty under section 271C or 271CA, it is proposed to insert reference of sections 271C and 271CA in the said clause, so as to empower the Board to issue directions or instructions in respect of the said sections also.

The amendment will take effect from 1st April, 2017.

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