Budget 2025 proposes Exemption from Prosecution for Delayed Payment of TCS:

Budget 2025 proposes Exemption from Prosecution for Delayed Payment of TCS The Union Budget 2025 presented by the Hon'ble Finance Minister Nirmala Sitharaman in parliament on 1st Feb 2025. Many changes in direct taxation proposed in this Budget. This Budget also proposed exemption from prosecution for delayed payment of TCS in certain cases. Section 276BB of the Act provides for prosecution in the event of failure to pay the tax collected at the source to the Central Government. The provision of the said section states that if a person fails to pay to the credit of the Central Government the tax collected by him as required under the provisions of section 206C of the Act, he shall be punished with rigorous imprisonment for a term not less than three months but not more than seven years, as well as a fine. It is proposed to amend section 276BB of the Act to provide that the prosecution shall not be instituted against a person covered under the said section, if the payment of the tax collected at source has been made to the credit of the Central Government at any time on or before the time prescribed for filing the quarterly statement under proviso to sub-section (3) of section 206C of the Act in respect of such payment. This amendment will take effect from the 1st day of April, 2025.