Income-tax law | Historical provision | Updated 28 October 2026

Section 272BBB of the Income-tax Act, 1961: Penalty for Non-Compliance with Section 206CA

Section 272BBB imposed a penalty for failure to comply with the former tax collection account number requirements under Section 206CA. Its application was expressly restricted to failures occurring before 1 October 2004.

Statutory penaltyRs. 10,000

Relevant defaultBefore 1 Oct 2004

AuthorityAssessing Officer

Important current-law distinction: Section 272BBB is a historical penalty provision. It does not impose a new penalty for failures occurring on or after 1 October 2004. Current TAN-related obligations should not be confused with the discontinued separate TCS account number requirement.

Meaning and purpose of Section 272BBB

Section 272BBB formed part of Chapter XXI (penalties) of the Income-tax Act, 1961. It supported the former Section 206CA, which required persons collecting tax at source (TCS) under Section 206C to apply for a tax collection account number and quote it in specified documents.

From 1 October 2004, the separate Section 206CA regime ceased to apply. The legislative change consolidated tax deduction and tax collection account number compliance under Section 203A, with penalty consequences addressed under Section 272BB, as applicable to the relevant period.

Explanation of the statutory provisions

Section 272BBB(1): Failure to comply

Where a person failed to comply before 1 October 2004 with Section 206CA, the Assessing Officer could impose a penalty of Rs. 10,000. The date restriction is essential: this is not an ongoing penalty for present-day TCS filings.

Section 272BBB(2): Opportunity of hearing

A penalty order cannot be passed under sub-section (1) unless the person concerned has been given an opportunity of being heard. The person must have an opportunity to respond to the alleged default before the authority decides the matter.

Section 206CA: Former tax collection account number

Section 206CA required a person collecting tax under Section 206C to obtain a tax collection account number and quote it in prescribed challans, certificates, returns and related documents. A statutory proviso made Section 206CA inapplicable on or after 1 October 2004.

Legislative history and practical effect

1 June 2002: Section 272BBB was inserted by the Finance Act, 2002.
1 October 2004: The Finance (No. 2) Act, 2004 restricted the penalty to non-compliance before that date, alongside the discontinuance of the separate Section 206CA requirement.
After 1 October 2004: Tax deduction and collection account number requirements were addressed under Section 203A, with Section 272BB governing specified failures under that provision.
1 April 2026: The Income-tax Act, 2025 replaced the 1961 Act, subject to the repeal and savings provisions in Section 536. The historical 2004 cut-off in Section 272BBB remains relevant when interpreting an old default.

Illustrative example

If a person collecting tax in August 2003 failed to obtain or quote the then-required tax collection account number, the historical provisions of Sections 206CA and 272BBB may be relevant, subject to the facts and applicable procedural and limitation rules. A comparable omission in 2026 cannot be penalised under Section 272BBB merely because the person collects tax at source.

Current compliance: TAN and TCS

For current compliance, businesses should refer to the law governing the relevant tax year and transaction, including the Income-tax Act, 2025 for tax years beginning on or after 1 April 2026. Existing TAN identifiers continue under the new regime. The repeal and savings provisions preserve the treatment of earlier periods and relevant proceedings.

Do not treat the Rs. 10,000 figure under historical Section 272BBB as a general current penalty for all TAN or TCS defaults. Different provisions and requirements may apply depending on the date and nature of the omission.

Frequently asked questions

Is Section 272BBB applicable to new defaults in 2026?

No. Its express scope was limited to failures under Section 206CA occurring before 1 October 2004.

What was the penalty under Section 272BBB?

Rs. 10,000, imposed by order of the Assessing Officer, subject to the statutory conditions.

Was a hearing required before imposing the penalty?

Yes. Section 272BBB(2) required an opportunity of being heard.

What replaced the separate tax collection account number?

The separate Section 206CA requirement was discontinued from 1 October 2004; the consolidated TAN framework under Section 203A addressed TDS and TCS account number compliance under the 1961 Act.

Official legislation and references

Income Tax Department: Section 272BBB (historical text)Income Tax Department: Section 206CA and 2004 proviso Legislative memorandum: Common account number for TDS and TCS Income Tax Department: Income-tax Act, 2025 transition and Section 536

This article explains the historical provision and its interaction with subsequent law. The precise treatment of a dispute depends on the facts, relevant statutory text, procedural requirements and applicable limitation provisions.