Section 276A of Income Tax Act for AY 2023-24

Section 276A of Income Tax Act 1961 amended by Finance Act. Failure to comply with the provisions of sub-sections (1) and (3) of section 178.

Amended and updated notes on section 276A 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 Failure to comply with the provisions of sub-sections (1) and (3) of section 178.

Chapter XXII (Sections 275A to 280D) of the Income Tax Act 1961 deals with the provisions related to offences and prosecutions. Section 276A of IT Act 1961 provides for Failure to comply with the provisions of sub-sections (1) and (3) of section 178.

Recently, we have discussed in detail section 276 (Removal, concealment, transfer or delivery of property to thwart tax recovery) of IT Act 1961. Today, we learn the provisions of section 276A of Income-tax Act 1961. The amended provision of section 276A 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 276A 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-276A: Failure to comply with the provisions of sub-sections (1) and (3) of section 178

If a person —

  • (i) fails to give the notice in accordance with sub-section (1) of section 178; or
  • (ii) fails to set aside the amount as required by sub-section (3) of that section; or
  • (iii) parts with any of the assets of the company or the properties in his hands in contravention of the provisions of the aforesaid sub-section,

he shall be punishable with rigorous imprisonment for a term which may extend to two years :

Provided that in the absence of special and adequate reasons to the contrary to be recorded in the judgment of the court, such imprisonment shall not be for less than six months.


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