Section 486
Section 486: punishment not to be imposed in certain cases
Section 486 provides a reasonable-cause defence, but only against the offences in sections 476 and 477 - which deal with failure to pay tax deducted or collected at source to the credit of the Central Government.
This explanation is AI-assisted and pending review by our CA/CS team. It is general information, not professional advice - always cross-check against the bare law text above or talk to our tax team for guidance specific to your situation.
What Section 486 says
"No person shall be punishable for any failure referred to in section 476 or 477, irrespective of anything contained in that section, if he proves that there was reasonable cause for such failure."
Scope of the defence
This defence is limited to the failures described in section 476 (failure to pay tax deducted at source, or tax on certain online-gaming winnings/virtual digital asset consideration, to the credit of the Central Government) and section 477 (failure to pay tax collected at source to the credit of the Central Government). It does not extend to other offences in this Chapter.
Frequently asked questions
Which offences does Section 486 provide a defence against?
Only the offences under section 476 and section 477 - both relating to failure to pay tax deducted or collected at source to the credit of the Central Government.
What must a person prove to avoid punishment under Section 486?
That there was reasonable cause for the failure referred to in section 476 or 477.
Related sections
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Talk to our tax team about a TDS/TCS deposit issueLast updated 9 September 2026