Section 448 — Penalty for failure to deduct tax at source

If any person fails to—
( a) deduct the whole or any part of the tax as required under Chapter XIX-B;
or
( b) pay or ensure the payment of, the whole or any part of the tax as required
by or under—
10. Substituted by the Finance Act, 2026, w.e.f. 1-4-2026. Prior to its substitution, section 446
read as under :
“446. Failure to get accounts audited.— If any person fails to get his accounts audited for
any tax year or years or furnish the audit report as required under section 63, the Assessing
Officer may impose a penalty on such person, which shall be the lesser of—
( a) 0.5% of the total sales, turnover, or gross receipts in business, or the gross receipts
in profession for such tax year or years; or
( b) ` 150000.”
11. Omitted by the Finance Act, 2026, w.e.f. 1-4-2026. Prior to its omission, section 447 read as
under :
“447. Penalty for failure to furnish report under section 172.—If any person fails to furnish a
report from an accountant as required by section 172, the Assessing Officer may impose a
penalty of ` 100000 on such person.”
( i) Note 2 below the Table in section 393(3); or
( ii) Note 6 to section 393(1) (Table: Sl. No. 8),
then, the Assessing Officer may impose on him, a penalty equal to the tax which
such person failed to deduct or pay or ensure payment of, as aforesaid.