Amendment of section 476

Section 111 of the Finance Act, 2026 deals with amendment of section 476. Amendment of section 476. 111. In section 476 of the Income-tax Act, for sub-section (1), the following sub-section shall be substituted, namely:— "(1) | If a person fails to— (a) | pay the tax deducted at source by him to the credit of the Central Government, as required by or under the provisions

Amendment of section 476.

111. In section 476 of the Income-tax Act, for sub-section (1), the following sub-section shall be substituted, namely:—

"(1)

If a person fails to—

(a)		pay the tax deducted at source by him to the credit of the Central Government, as required by or under the provisions of Chapter XIX-B; or
(b)		pay tax or ensure payment of tax to the credit of the Central Government in respect of—

(A)		any income by way of winnings from online games as referred in section 393(3) [Table: Sl. No. 2], excluding such winnings which are wholly in kind, as referred to in Note 2 to the said Table; or
(B)		any sum by way of consideration for transfer of a virtual digital asset as referred in section 393(1) [Table: Sl. No. 8(vi)], excluding such consideration which is wholly in kind, as referred to in Note 6 to the said Table,

he shall be punishable—

(i)		with simple imprisonment for a term up to two years, or with fine, or with both, where the amount of such tax exceeds fifty lakh rupees; or
(ii)		with simple imprisonment for a term up to six months, or with fine, or with both, where the amount of such tax exceeds ten lakh rupees but does not exceed fifty lakh rupees; or
(iii)		with fine, in any other case.".

Section 111, The Finance Act, 2026 (Act 4 of 2026).