Prosecution u/s 276CC-increase in threshold of tax payable, TDS to be considered in determining tax liability payable
The existing provisions of section 276CC of the Income Tax Act, inter alia, provide that prosecution proceedings for failure to furnish returns of income against a person shall not proceeded against, for failure to furnish the return of income in due time, if the tax payable by such person, not being a company, on the total income determined on regular assessment does not exceed three thousand rupees.
The existing provisions do not provide for taking into account tax collected at source and self-assessment tax for the purposes of determining the tax liability.
Since the intent of said provision has always been to take into account pre-paid taxes, while determining the tax payable, the Union Budget 2019-20 proposed to amend the said section so as to make the legislative intention clear and to include the self-assessment tax, if any, paid before the expiry of the assessment year, and tax collected at source for the purpose of determining tax liability.
Rationalisation of the Prosecution provisions u/s 276CC
Further, in order to rationalise the existing threshold limit of tax payable under said section, it has been further proposed to amend the said section so as to increase the threshold of tax payable from the existing rupees three thousand to rupees ten thousand.
These amendments will take effect from 1st April, 2020 and will, accordingly, apply in relation to assessment year 2020-21 and subsequent assessment years.
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