The 60-second version
Section 273B grants immunity from penalty under specified TDS/TCS sections if failure was due to reasonable cause — returning NRIs must document genuine hardship before AO imposes Section 271H or 206CA penalty.
Reasonable cause is fact-specific — hospitalisation or bank outage may waive 271H but not 276CC
Section 273B applies to penalties under Chapter XVII-BB including Section 271H late TDS return and Section 206CA TCS failure — AO must accept reasonable cause before imposing penalty.
Returning NRIs citing overseas relocation, hospitalisation, or AD bank SWIFT delay need contemporaneous evidence — not post-notice reconstruction.
TCS penalty lane: Section 206CA guide for seller-side TCS failure penalty.
273B coverage
| Penalty | Section | 273B? |
|---|---|---|
| Late TDS return | 271H | Yes if cause |
| TCS failure | 206CA | Yes if cause |
| Late fee | 234F | No |
| Prosecution | 276CC | No |
Immunity claim
Gather proof
Hospital / bank letter.
Reply notice
Within 30 days.
File belated
TDS/TCS return.
Pay tax
Short deduction.
AO hearing
Present cause.
Flow
273B kit
- AO notice.
- Cause evidence.
- Belated return ack.
- Tax payment challan.
- CA letter.
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Not automatic
273B is AO discretion — filing belated return alone does not guarantee immunity; cause must precede or explain delay.
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vs 270AA?
270AA is immunity for under-reported income penalty; 273B is TDS/TCS penalty immunity.
vs 273A?
273A is Commissioner waiver of penalty generally; 273B is statutory reasonable-cause for Chapter XVII-BB.
Relocation?
Overseas move may be reasonable cause for late TDS if documented with flight ticket and employer letter.
276CC?
Criminal prosecution under 276CC is not covered by 273B.
Appeal?
If AO rejects, appeal to CIT(A) with same cause evidence.
RNOR?
273B applies once you are deductor/collector with Indian TAN.
Your tax year is already running.
RNOR status, exit timing, and DTAA benefits all depend on decisions you make before you land. Don't guess.