Section 449 of Income Tax Act 2025
If any person fails to collect the whole or any part of the tax as required under Chapter XIX-B, the Assessing Officer may impose on him, a penalty equal to the tax which such person failed to collect.
Summary
- This section penalizes any person who fails to collect tax at source when they are required to do so under Chapter XIX-B.
- The obligation to collect tax at source must arise under Chapter XIX-B of the Act, which regulates tax collection at source.
- The penalty for failing to collect the tax is imposed by the Assessing Officer.
- The penalty amount is exactly equal to the tax that the person failed to collect.
Practical examples
FAQ
1. Who has the authority to impose a penalty for the failure to collect tax at source?
The Assessing Officer has the authority to impose this penalty.
2. How is the penalty amount calculated under Section 449?
The penalty is exactly equal to the amount of tax that the person failed to collect.
3. Under which chapter of the Act must the obligation to collect tax arise?
The obligation must arise under Chapter XIX-B.
Test yourself
Q1.What is the penalty amount for failing to collect the whole or any part of the tax as required under the law?
Q2.Which officer is authorized to levy a penalty under Section 449?
Q3.Under which Chapter of the Income-tax Act, 2025 must the tax collection requirement be specified for Section 449 to apply?
Q4.If a seller fails to collect a tax of 15,000 rupees on a transaction where collection was mandatory, what is the maximum penalty the Assessing Officer can impose under Section 449?
Q5.Does Section 449 apply to the failure to deduct tax at source or the failure to collect tax at source?
Q6.Under Section 449, what happens if a person fails to collect only a part of the required tax?