Section 278A of ITA, 1961 : Section 278A: Punishment For Second And Subsequent Offences

Explanation using Example

Imagine a business owner, Mr. Sharma, who was previously convicted for not depositing tax deducted at source (TDS) within the prescribed time, an offence under section 276B of the Income-tax Act, 1961. After serving his sentence, Mr. Sharma resumes business activities. However, two years later, he repeats the same offence by again failing to deposit TDS on time. This time, due to his prior conviction, Section 278A comes into play. As a result, Mr. Sharma is not only convicted again but also faces a mandatory minimum sentence of six months, which could extend up to seven years, along with a fine, because of the repeat offence.