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Section 276B of Income Tax Act about Failure to Pay TDS

How to Avoid Legal Penalties Under Section 276B of the IT Act?

What Is Compounding of Offence?

What Are the Types of Offences Individuals Can Compound?

What Are the Compounding Charges?

How to Calculate Compounding Charges?

Take a look at the table mentioned below to compute compounding charges:

Particulars

Amount

Compounding charges

₹ 100

Add: Establishment and prosecution charges

₹ 10

Add: Litigation cost (based on the actual expenses incurred by the department)

₹ 5

Add: Charges of co-accused for default in tax payment according to Section 278B (10% of compounding charges for each co-accused)

₹ 10

Total

₹ 125

Note: The table mentioned above is an example to make readers understand the calculation of compounding charges. The actual amount may vary.

Thus, this is all about Section 276B of the Income Tax Act and other vital aspects associated with it. It is also essential to observe timely tax payments to avoid paying additional penalties.

(Source)

FAQs about Section 276B of Income Tax Act