Penalty for Failure to Collect Tax at Source AY 2026-27

By | May 8, 2026

Penalty for Failure to Collect Tax at Source

Nature of Default

Failure to collect the whole or part of the tax required under Section 206C.

Quantum of Penalty

• The Assessing Officer may impose a penalty equal to the amount of tax which the person failed to collect at source.

• Penalty shall not be levied if the assessee proves reasonable cause for the failure.