Section 477 — Failure to pay tax collected at source

23[(1) If a person fails to pay the tax collected by him to the credit of the Central
Government, as required under section 397(3)(a), he shall be punishable––
( a) with simple imprisonment for a term up to two years, or with fine, or with
both, where the amount of such tax exceeds fifty lakh rupees; or
22. Substituted by the Finance Act, 2026, w.e.f. 1-4-2026. Prior to its substitution, sub-section
(1) read as under :
“(1) If a person fails to—
( a) pay the tax deducted at source by him to the credit of the Central Government, as
required by or under the provisions of Chapter XIX-B; or
( b) pay tax or ensure payment of tax to the credit of the Central Government, as required
under—
( i) Note 2 below the Table in section 393(3); or
( ii) Note 6 to section 393(1) (Table: Sl. No. 8),
he shall be punishable with rigorous imprisonment for a term which shall not be less than
three months but which may extend to seven years, and with fine.”
23. Substituted by the Finance Act, 2026, w.e.f. 1-4-2026. Prior to its substitution, sub-section
(1) read as under :
“(1) If a person fails to pay the tax collected by him to the credit of the Central Government,
as required under section 397(3)(a), he shall be punishable with rigorous imprisonment for
a term which shall not be less than three months but which may extend to seven years, and
with fine.”
( b) with simple imprisonment for a term up to six months or with fine, or with
both, where the amount of such tax exceeds ten lakh rupees but does not
exceed fifty lakh rupees; or
( c) with fine, in any other case.]
(2) The provisions of this section shall not apply if the payment of the tax collected
at source has been made to the credit of the Central Government on or before the
time prescribed for filing the statement under section 397(3)(b) in respect of such
payment.