What is the meaning of Failure to subscribe to the eligible issue of capital? What is Penalty for failure to deduct tax at source? Section 271BB and 271C of Income Tax Act 1961

Failure to subscribe to the eligible issue of capital and Penalty for failure to deduct tax at source are defined under section 271BB and 271C of Income Tax Act 1961. Provisions under these Sections are:

Section 271BB of Income Tax Act "Failure to subscribe to the eligible issue of capital"

Section 271BB. Whoever fails to subscribe any amount of subscription to the units issued under any scheme referred to in sub-section (1) of section 88A to the eligible issue of capital under that sub-section within the period of six months specified therein, may be directed by the Joint Commissioner to pay, by way of penalty, a sum equal to twenty per cent of such amount.

 

Section 271C of Income Tax Act "Penalty for failure to deduct tax at source"

Section 271C. (1) If any person fails to-
(a) deduct the whole or any part of the tax as required by or under the provisions of Chapter XVII-B; or

(b) pay the whole or any part of the tax as required by or under-

(i) sub-section (2) of section 115-O; or

(ii) the second proviso to section 194B, then, such person shall be liable to pay, by way of penalty, a sum equal to the amount of tax which such person failed to deduct or pay as aforesaid.

(2) Any penalty imposable under sub-section (1) shall be imposed by the Joint Commissioner.

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