Section 449
Section 449: penalty for failure to collect tax at source
Section 449 is the TCS counterpart to section 448's TDS penalty - if a person required to collect tax at source under Chapter XIX-B fails to do so, the Assessing Officer can impose a penalty equal to the tax that should have been collected.
What Section 449 says
"If any person fails to collect the whole or any part of the tax as required under Chapter XIX-B, the Assessing Officer may impose on him, a penalty equal to the tax which such person failed to collect."
How the penalty is measured
As with the TDS-failure penalty in section 448, this penalty is not fixed - it equals whatever amount of tax the person failed to collect at source under Chapter XIX-B, whether the shortfall is the whole amount or just part of it.
Frequently asked questions
How much is the penalty for failing to collect TCS under Section 449?
A penalty equal to the whole or the part of the tax that the person failed to collect at source under Chapter XIX-B.
Is this the same as the TDS penalty in Section 448?
It works the same way but applies to the opposite obligation - section 448 penalises failure to deduct/pay TDS, while section 449 penalises failure to collect TCS, both under Chapter XIX-B.
Related sections
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