Section 272BB of Income Tax Act for AY 2023-24

Section 272BB of Income Tax Act 1961 amended by Finance Act 2022 and Income-tax Rules, 1962. Penalty for failure to comply with section 203A.

Amended and updated notes on section 272BB of Income Tax Act 1961 as amended by the Finance Act 2022 and Income-tax Rules, 1962. Detail discussion on provisions and rules related to Penalty for failure to comply with the provisions of section 203A.

Chapter XXI (Sections 270A to 275) of the Income Tax Act 1961 deals with the provisions related to penalties imposable. Section 272BB of IT Act 1961 provides for Penalty for failure to comply with the provisions of section 203A.

Recently, we have discussed in detail section 272B (Penalty for failure to comply with the provisions of section 139A) of IT Act 1961. Today, we learn the provisions of section 272BB of Income-tax Act 1961. The amended provision of section 272BB is effective for financial year 2022-23 relevant to the assessment year 2023-24.

In this article, you will learn detail of the provisions of section 272BB of the Income Tax Act, 1961 Bare Act read with the Income-tax Rules, 1962 as provided by Ministry of Law and Justice, Government of India.

Section-272BB: Penalty for failure to comply with the provisions of section 203A

Section 272BB(1) of Income Tax Act

If a person fails to comply with the provisions of section 203A, he shall, on an order passed by the Assessing Officer, pay, by way of penalty, a sum of ten thousand rupees.

Section 272BB(1A) of Income Tax Act

If a person who is required to quote his “tax deduction account number” or, as the case may be, “tax collection account number” or “tax deduction and collection account number” in the challans or certificates or statements or other documents referred to in sub-section (2) of section 203A, quotes a number which is false, and which he either knows or believes to be false or does not believe to be true, the Assessing Officer may direct that such person shall pay, by way of penalty, a sum of ten thousand rupees.

Section 272BB(2) of Income Tax Act

No order under sub-section (1) or sub-section (1A) shall be passed unless the person on whom the penalty is proposed to be imposed is given an opportunity of being heard in the matter.


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