The Income Tax Act imposes various penalties for different violations. These include penalties for failure to disclose income, file returns, or maintain required documents, as well as penalties for under-reporting or misreporting income. The penalties range from a percentage of the tax payable on the undisclosed income to specific monetary amounts for various infractions. Additionally, penalties can be imposed for failure to comply with TDS/TCS regulations, failure to furnish required reports, or furnish inaccurate information. The penalties vary depending on the nature of the violation, and range from fixed amounts to percentages of the total sales or turnover. Penalties are also specified for non-compliance with PAN or TAN regulations, failure to furnish statements, and failure to furnish reports for certain financial transactions and international transactions.
Penalty Under Income Tax Act
| Sl No | Section No. and Description | Penalty |
| 1) | Section 158BFA- Determination of undisclosed income for the block period, when a search is initiated under section 132 or books of account, other documents or any assets are requisitioned under section 132A in the case of any person | Minimum – 100% of the tax payable on undisclosed income Maximum – 300% of the tax payable in respect of the undisclosed income This penalty will be levied only on that portion of the income which was determined by the ITO in excess of the ITR furnished by the assessee u/s 158BC and an appeal is not filed against such assessment |
| 2) | Section 221(1)- Default in making payment of taxes | Amount as directed by the assessing officer. However, the amount of penalty cannot exceed the amount of tax in arrears. |
| 3) | Section 234E- Failure to file return in respect of TDS/TCS within the time prescribed as given under section 200(3)/206C(3) | Rs.200 for every day until you file the return The penalty cannot be more than the TDS/TCS amount. |
| 4) | Section 234F- Default in furnishing of return under section 139(1) within the time prescribed | Rs.5,000 if return is furnished before 31st December of the assessment year. Note: If the income does not exceed Rs.5 Lakhs then the penalty shall not exceed Rs.1,000 |
| 5) | Section 270A- – Penalty for under-reporting of income – Penalty for under-reporting on account of misreporting of income | – 50% of the amount of tax payable on under-reported income. – In case of misreporting, 200% of the amount of tax payable on under-reported income |
| 6) | Section 271A- Failure to keep, maintain or retain the books of account, documents as required under Section 44AA | Rs. 25,000 |
| 7) | Section 271AA(1)- Penalty in respect of an international transaction/specified domestic transaction with regard to: -failure to keep and maintain any such information and document as required by Section 92D(1) or 92D(2) -failure to report such transaction which is required to be done -Maintaining or furnishing incorrect information or document | 2% of the value of each international transaction or specified domestic transaction entered into. |
| 8) | Section 271AA(2)- Failure to furnish information and document to the authority prescribed as required under Section 92D(4) | Rs.5,00,000 |
| 9) | Section 271AAA- Where search has been initiated under Section 132 between 1st day of June, 2007 and 1st day of July, 2012 | 10% of the undisclosed income of the specified previous year |
| 10) | Section 271AAB(1)– Where search was initiated after 1-7-2012 but before 15-12-2016 and undisclosed income was found | a) 10% of the undisclosed income if: Assessee admits the undisclosed income along with the manner of deriving the same. -Substantiates the manner in which undisclosed income was derived -Pays the tax along with interest and furnishes the return of income for the specified previous year declaring undisclosed income on or before the specified date b) 20% of the undisclosed income if: The assessee does not admit the undisclosed income -Declares the income for the specified previous year and pays the tax along with interest on the undisclosed income on or before the specified date c) 60% of the undisclosed income: If not covered under clause (a) or (b) above |
| 11) | Section 271AAB(1A)- Where search was initiated after 15-12-2016 and undisclosed income was found | a) 30% of the undisclosed income if: -Assessee admits the undisclosed income along with the manner of deriving the same. – Substantiates the manner in which undisclosed income was derived – Pays the tax along with interest and furnishes the return of income for the specified previous year declaring undisclosed income on or before the specified date b) 60% of the undisclosed income if it is not covered under the provisions of clause (a) |
| 12) | Section 271AAC- Income under sections 68,69,69A,69B,69C,69D determined by the assessing officer if not included by assessee or tax under Section 115BBE not paid *Section 68- Cash Credits Section 69- Unexplained Investments Section 69A- Unexplained money Section 69B-Amount of investments not fully disclosed in books of account Section 69C-Unexplained expenditure | At the rate of 10% on tax payable under Section 115BBE |
| 13) | Section 271AAD- Penalty for false entry, fake invoices etc. in books of account | If any assessing officer finds- a) A false entry, or b) An omission of any entry which is relevant for the computation of the total income of an assessee. He may direct the assessee to pay a penalty of an amount equal to the sum of such false or omitted entries. The false entry here means the following: a) Forged or false documents such as a fake invoice b) Any invoice of supply or receipts of goods or services issued by any person without actual supply or receipt of goods or services c) An invoice in respect of the supply or receipt of goods or services or both to or from a person who does not exist |
| 14) | Section 271B- Failure to get the accounts audited or furnish the report as required under Section 44AB | In the case of business: One-half per of the total sales, turnover/gross receipts. or Rs.1,50,000, whichever is less |
| 15) | Section 271BA- Failure to furnish a report from an accountant to be furnished by persons entering into an international transaction or specified domestic transaction under Section 92E | Rs. 1,00,000 |
| 16) | Section 271BB- Failure to subscribe to the eligible issue of capital referred to in Section 88A(1) | 20% of such amount |
| 17) | Section 271C- Failure to deduct tax at source | A sum equal to the amount of tax not paid or failed to deduct |
| 18) | Section 271CA- Failure to collect tax at source | A sum equal to the amount of tax not collected |
| 19) | Section 271D- Accepting loan or deposit or specified sum in contravention of Section 269SS | A sum equal to the loan or deposit or specified sum taken |
| 20) | Section 271DA- Receiving any sum( Rs. 2 Lakhs or more) in contravention to the provisions of Section 269ST | A sum equal to the amount of receipt |
| 21) | Section 271DB-Penalty for failure to comply with the provision of section 269SU with regard to providing a facility for accepting payment through the prescribed electronic modes of payment | a sum of Rs 5,000, for every day during which such failure continues |
| 22) | Section 271E- Failure to comply with the provisions of Section 269T with regard to the repayment of loan/deposit/specific advance | Sum equal to the amount of loan/deposit/specific advance repaid. |
| 23) | Section 271F- Failure to furnish the returns as required under Section 139(1) or by its proviso before the end of the relevant assessment year Note: Applicable up to AY 2017-18 | Rs.5,000 |
| 24) | Section 271FA- Failure to furnish a statement of financial transaction or reportable account under Section 285BA(1) Failure to furnish the statement within the period specified in the notice issued under Section 285BA(5) | Rs.500 for every day during which the failure continues Rs.1,000 for every day during which the failure continues |
| 25) | Section 271FAA- Furnishing inaccurate statement of financial transaction or reportable account. | Rs.50,000 |
| 26) | Section 271FAB- Failure to furnish statement/information/document by an eligible investment fund within the time prescribed as provided under Section 9A(5) | Rs.5,00,000 |
| 27) | Section 271FB- Failure to furnish a return of fringe benefits as required under Section 115WD(1) within the prescribed time | Rs.100 for every day during which the failure continues |
| 28) | Section 271G- Failure to furnish information under Section 92D(3) in relation to an international transaction or specified domestic transactions | 2% of the value of the international transaction or specified domestic transaction for each such failure. |
| 29) | Section 271GA- Failure by the Indian concern to furnish any information or document under Section 285A Section 285A- – Where any interest/share in an entity registered outside India obtains its value from assets located in India and – Where such foreign company holds assets in the Indian concern Such an Indian concern shall, for the purposes of determination of any income accruing or arising in India, furnish the documents within the prescribed time | – 2% of the value of the transaction in respect of which such failure has taken place if such transaction had the effect of directly or indirectly transferring the right of management/control in relation to the Indian concern. – Rs. 5,00,000 in any other case |
| 30) | Section 271GB- – Failure to furnish the report/submitting an inaccurate report by the reporting entity which is required to furnish a country-by-country report as required under Section 286. – Failure to produce the documents within 30 days of notice as prescribed under Section 286(6). – Furnishing inaccurate information in the report which is to be furnished under Section 286(2). | – For delay of: a) less than one month: Rs.5,000 for every day of default b) more than one month: Rs.15,000 for every day of default c) Continuing default even after service of notice under either (a) or (b) above penalty would be Rs.50,000 for every day of default. – Rs.5,000 for every day of default starting after the period for furnishing the document expires. – Rs.5,00,000 |
| 31) | Section 271H- Failure to furnish TDS/TCS statements of furnishing incorrect information within the prescribed time Note: Applicable to TDS/TCS statements to be delivered after 01-07-2012 | Minimum: Rs.10,000 Maximum: Rs.1,00,000 |
| 32) | Section 271I- Failure in furnishing the information related to the payment made to a non-resident, which is not a company/foreign company of any sum (even though not chargeable under the provisions of this act) | Rs.1,00,000 |
| 33) | Section 271J- Incorrect information in reports/certificates by an accountant/merchant banker/registered valuer | Rs. 10,000 for each such report/certificate |
| 34) | Section 271K-Penalty for failure to furnish statements under section 35(1) ,80G(5) | Minimum: Rs.10,000 Maximum: Rs.1,00,000 |
| 35) | Section 272A(1)- Any person fails/refuses to: – Answer questions put by the IT authority – Sign statements which the IT authority requires him to do -Give evidence or produce the books under summons issued under Section 131(1) -Comply with the notice issued under Section 142(1) or 143(2) or 142(2A) | Rs. 10,000 for each default |
| 36) | Section 272A(2)- Failure to: – Furnish the statement regarding ownership/beneficial interest in the securities in order to determine whether tax is borne on the same as required under Section 94(6) – Furnish the notice of discontinuance within 15 days under section 176(3) – Furnish information, TDS return, TCS returns and submission of statements by producers of cinematograph films under section 133/206/206C/285B – To allow inspection/copies of the register under Section 134 -To furnish return of income under Section 139(4A) or 139(4C) -To deliver a copy of the declaration for transactions where no TDS needs to be deducted as given under Section 197A -To furnish a certificate for TDS/TCS under section 203/206C -To deduct and pay tax in respect of salary as referred to in Section 226 -To furnish a statement to the person receiving the salary complete particulars of perquisites or profits in lieu of salary under section 192(2C) -To deliver in due time a copy of declaration as required under Section 206C(1A) -To deliver statements pertaining to TDS/TCS under section 200(3) or 206C(3) -To furnish quarterly returns in respect of payment of interest to residents without deduction of tax within the prescribed time and in a prescribed manner under section 206A(1) -To furnish a statement in respect of sums credited to the Central Government under Section 200(2A) or Section 206C(3A). | Rs 500 for every day during which the failure continues In sections related to TDS/TCS, the amount of penalty shall not exceed the amount of tax-deductible/collectible. |
| 37) | Section 272AA- Failure to comply with Section 133B wherein an income tax authority has the power to call for information | Maximum: Rs. 1,000 |
| 38) | Section 272B- Failure to comply with Section 139A with regard to a permanent account number(PAN) or Aadhar number -PAN is to be quoted in the documents as prescribed by the Board under Section 139(5)(c) -PAN is to be furnished to the person deducting tax by the person receiving the income PAN is to be furnished to the person responsible for collecting tax by the buyer/licensee/lessee. If in any of the circumstances the PAN furnished is false or the person believes it to be false then he shall be liable to a penalty | Rs.10,000 |
| 39) | Section 272BB- Failure to apply/quote the tax deduction/tax collection number Tax deduction number/ tax collection number falsely quoted or the person believes it to be false. | Rs.10,000 |
| 40) | Section 272BBB – Penalty for failure to comply with the provisions of section 206CA before the 1st day of October, 2004 | Rs.10,000 |
FAQs on Penalty provision under IT Act
- When penalty under Section 221 shall be imposed?
Penalty under Section 221 shall be imposed if an assessee is in default or is deemed to be in default in payment of tax.
- What is the amount of penalty levied under section 221?
Such amount as the Assessing Officer may impose subject to a maximum limit of tax in arrears
- When penalty under Section 270A may be imposed?
Penalty under Section 270A may be imposed for under-reporting and misreporting of income (not being an unexplained income).
- What is under-reporting of income?
| Cases | Income assessed under normal Provisions | Income assessed under MAT/AMT Provisions |
| Return of Income is filed | Income assessed is greater than the income determined in the return processed u/s 143(1)(a) | The deemed total income assessed or reassessed as per the provisions of section 115JB/115JC, is greater than the deemed total income determined in the return processed under section 143(1)(a) |
| No Return of Income is filed or return is filed for the first time under section 148 | The income assessed is greater than the maximum exemption limit | The deemed total income assessed as per the provisions of section 115JB/115JC, is greater than the maximum exemption limit. |
| Case of Reassessment | The income reassessed is greater than the income assessed or reassessed immediately before such reassessment | The deemed total income reassessed as per the provisions of section 115JB/115JC, is greater than the deemed total income assessed or reassessed immediately before such reassessment. |
| Loss Assessed | The income assessed or reassessed has the effect of reducing the loss or converting such loss into income | The income assessed or reassessed has the effect of reducing the loss or converting such loss into income. |
- What is misreporting of income? The following cases will be considered as misreporting of income:
- 1.Misrepresentation or suppression of facts;
- Failure to record investments in the books of account;
- Claim of expenditure not substantiated by any evidence;
- Recording of any false entry in the books of account;
- Failure to record any receipt in books of account having a bearing on total income; and
- Failure to report any international transaction or any transaction deemed to be an international transaction or any specified domestic transaction, to which the provisions of Chapter X apply.
- What is the amount of penalty levied under section 270A?
The penalty shall be a sum equal to 50% of the amount of tax payable on under-reported income.However, if under-reported income is in consequence of any misreporting thereof by any person, the penalty shall be equal to 200% of the amount of tax payable on under-reported income.
- When penalty under Section 271A may be imposed?
Penalty under Section 271A may be imposed if any person fails to keep and maintain any books of account and other documents as required under Section 44AA. Further, the penalty may also be imposed on failure to retain such books of accounts and other documents for 6 years.
- What is the amount of penalty levied under section 271A?
Rs. 25,000
- When penalty under Section 271AA may be imposed?
- Penalty under Section 271AA may be imposed if any of the following defaults are committed by the assessee:
- Failure to keep and maintain information and documents, as referred under Section 92D, in respect of an international transaction or specified domestic transaction entered by it;
- Failure to report the international transaction or specified domestic transaction which he is required to do so;
- Maintaining or furnishing incorrect information or document in respect of an international transaction or specified domestic transaction.
- What is the amount of penalty levied under section 271AA?
The penalty shall be a sum equal to 2% of the value of each international transaction or specified domestic transaction entered into by the taxpayer.
However, if a constituent entity of an international group fails to furnish information and documents as required under Section 92D(4), the Director-General of Income-tax (Risk Assessment) may impose a penalty of Rs 500,000.
- When penalty under Section 271AAA shall be imposed?
Penalty under Section 271AAA shall be imposed where a search has been initiated before 1-7-2012 and undisclosed income found.
- What is the amount of penalty levied under section 271AAA?
10% of undisclosed income
- When penalty under Section 271AAB(1) may be imposed?
Penalty under Section 271AAB(1) may be imposed where a search has been initiated on or after 1-7-2012 but before 15-12-2016 and undisclosed income found.
- What is the amount of penalty levied under section 271AAB(1)?
- 10% of undisclosed income of the specified previous year if assessee admits the undisclosed income; substantiates the manner in which it was derived; and on or before the specified date pays the tax, together with interest thereon and furnishes the return of income for the specified previous year declaring such undisclosed income
- 20% of undisclosed income of the specified previous year if assessee does not admit the undisclosed income, and on or before the specified date declare such income in the return of income furnished for the specified previous year and pays the tax, together with interest thereon;
- 60% of undisclosed income of the specified previous year if it is not covered by (a) or (b) above.
- When penalty under Section 271AAB(1A) may be imposed?
Penalty under Section 271AAB(1A) may be imposed where a search has been initiated on or after 15-12-2016 and undisclosed income found.
- What is the amount of penalty levied under section 271AAB(1A)?
- 30% of undisclosed income of the specified previous year if assessee admits the undisclosed income; substantiates the manner in which it was derived; and on or before the specified date pays the tax, together with interest thereon and furnishes the return of income for the specified previous year declaring such undisclosed income
- 60% of undisclosed income of the specified previous year in any other case.
- When penalty under Section 271AAC may be imposed?
Penalty under Section 271AAC may be imposed where income determined by the Assessing Officer includes any income referred to in section 68, section 69, section 69A, section 69B, section 69C, or section 69D for any previous year. [if such income is not included by the assessee in his return or tax in accordance with section 115BBE has not been paid].
- What is the amount of penalty levied under section 271AAC?
10% of tax payable under section 115BBE
- When penalty under Section 271AAD may be imposed?
- Penalty under Section 271AAD may be imposed if, during any proceedings under this Act, it is found that in the books of account maintained by any person there is:
- A false entry in the books of accounts; or
- An omission of any entry, which is relevant for computation of total income, to evade tax liability.
- What is the amount of penalty levied under section 271AAD?
100% of such false entries or omitted entry
- When penalty under Section 271AAE may be imposed?
Penalty under Section 271AAE may be imposed for violation of the provisions of 21st proviso to section 10(23C) or section 13(1)(c) pertaining to passing of unreasonable benefits to trustees or specified person.
- What is the amount of penalty levied under section 271AAE?
- For the first violation: To the extent of income applied by the institution for the benefit of any interested person referred to in section 13(3);
- For any violation in subsequent years: Twice the amount of such income so applied.
- When penalty under Section 271B may be imposed?
Penalty under Section 271B may be imposed if a person fails to get his accounts audited or fails to furnish a report of audit under Section 44AB in Form 3CA and Form 3CB or Form 3CD, as the case may be, by the due date.
- What is the amount of penalty levied under section 271B?
The penalty shall be 0.5% of total sales, turnover, or gross receipts (as the case may be) or Rs. 150,000, whichever is less.
- When penalty under Section 271BA shall be imposed?
Penalty under Section 271BA shall be imposed if a person, who has entered into an international transaction or specified domestic transaction, fails to furnish a report from a Chartered Accountant in the Form 3CEB on or before the due date.
- What is the amount of penalty levied under section 271BA?
Rs. 1,00,000
- When penalty under Section 271BB may be imposed?
Penalty under Section 271BB may be imposed for failure to subscribe any amount to units issued under scheme referred to in section 88A(1).
- What is the amount of penalty levied under section 271BB?
20% of such amount
- When penalty under Section 271C shall be imposed?
Penalty under Section 271C shall be imposed for the following defaults:
- Failure to deduct tax at source, whole or part thereof;
- Failure to pay dividend distribution tax;
- Failure to pay or ensure payment of tax in respect of the winnings in kind, whether wholly or partly, where cash part is not sufficient to meet the liability for deduction of tax in respect of whole winnings as referred to in Section 194B;
- Failure to ensure payment of tax in respect of the winnings from online game in kind, whether wholly or partly, where cash part is not sufficient to meet the liability for deduction of tax in respect of whole winnings from online games as referred to in Section 194BA;
- Failure to ensure payment of tax in respect of the benefit or perquisite in kind, whether wholly or partly, where cash part is not sufficient to meet the liability for deduction of tax in respect of whole of such benefit or perquisite as referred to in Section 194R;
- Failure to ensure payment of tax in respect of the consideration for transfer of virtual digital asset (VDA) in kind, whether wholly or partly, where cash part is not sufficient to meet the liability for deduction of tax in respect of such consideration for the transfer of VDA as referred to in Section 194S.
- What is the amount of penalty levied under section 271C?
The penalty shall be a sum equal to the amount of tax which such person has failed to deduct or pay.
- When penalty under Section 271CA shall be imposed?
Penalty under Section 271CA shall be imposed if a person fails to collect the whole or any part of tax which is required to be collected in accordance with Section 206C.
- What is the amount of penalty levied under section 271CA?
The penalty shall be a sum equal to the amount of tax which such person has failed to collect
- When penalty under Section 271D shall be imposed?
Penalty under Section 271D shall be imposed if a person takes or accepts any loan or deposit (or specified sum) in cash or in a mode which is in contravention to Section 269SS. “Specified sum” means any sum of money receivable, whether as advance or otherwise, in relation to transfer of an immovable property, whether or not the transfer takes place.
- What is the amount of penalty levied under section 271D?
The penalty shall be a sum equal to the amount of loan or deposit (or specified sum) so taken or accepted.
- When penalty under Section 271DA shall be imposed?
Penalty under Section 271DA shall be imposed if a person receives Rs. 200,000 or more from a person in cash or in a mode in contravention to Section 269ST.
- What is the amount of penalty levied under section 271DA?
The penalty shall be a sum equal to the amount of such receipt.
- When penalty under Section 271DB shall be imposed?
Penalty under Section 271DB shall be imposed if a person, carrying on a business, having total sales, turnover or gross receipts in excess of Rs. 50 crores during the immediately preceding previous year, fails to provide the facility for accepting payment through prescribed electronic modes as referred to in Section 269SU.
Rs. 5,000 rupees for every day of default
Penalty under Section 271E shall be imposed if any person repay any loan or the deposit (including interest) or specified advance in cash or in a mode in contravention to Section 269T.
“Specified advance” means any sum of money in the nature of advance, by whatever name called, in relation to a transfer of immovable property, whether or not the transfer takes place.
- What is the amount of penalty levied under section 271E? The penalty shall be a sum equal to loan or deposit or specified advance so repaid.
- When penalty under Section 271FA may be imposed? Penalty under Section 271FA may be imposed if a person fails to furnish a Statement of Financial Transaction or Reportable Account under Section 285BA on or before the specified due date.
Rs. 500 per day of default
Further, if a person fails to furnish such statement within the due date, the tax authorities may issue a notice to such person directing him to file the statement within a period not exceeding 30 days from the date of service of such notice. In case such person fails to file the statement within the time specified in the notice, then a penalty of Rs. 1,000 per day shall be levied from the day immediately following the day on which the time specified in the notice expires.
Penalty under Section 271FAA may be imposed if any person provides inaccurate information in the Statement of Financial Transaction or Reportable Account under Section 285BA. The penalty may be levied if:
- The inaccuracy is due to a failure to comply with the due diligence or is deliberate on the part of that person;
- The inaccuracy is due to false or inaccurate information submitted by the holder of reportable accounts;
- The person knows the inaccuracy at the time of furnishing the statement but does not inform the tax authorities; or
- The person discovers the inaccuracy after furnishing the statement but he fails to inform and furnish correct information within 10 days.
Rs. 50,000
Further, an additional penalty of Rs. 5,000 per reportable account is imposed on the reporting financial institutions if there is any inaccuracy in statement of reportable account and such inaccuracy is due to false or inaccurate information submitted by the holder of reportable accounts.
Penalty under Section 271FAB may be imposed if an eligible investment fund fails to furnish a statement in Form 3CEK, containing information relating to the fulfilment of the conditions as referred to under Section 9A or any other information or document, within the prescribed time limit.
Rs. 5,00,000
- When penalty under Section 271G may be imposed? Penalty under Section 271G may be imposed if a person, who has entered into an international transaction or specified domestic transaction, fails to furnish any information or document as required by the Assessing Officer or Commissioner (Appeals) in the course of proceedings as referred to in Section 92D.
- What is the amount of penalty levied under section 271G? The penalty shall be a sum equal to 2% of the value of the international transaction or specified domestic transaction for each such failure.
- When penalty under Section 271GA may be imposed? Section 285A provides for reporting by an Indian concern if following two conditions are satisfied:
- Shares or interest in a foreign company or entity derive substantial value, directly or indirectly, from assets located in India; and
- Such foreign company or entity holds such assets in India through or in such Indian concern.
In this case, the Indian entity shall furnish the prescribed information for the purpose of determination of any income accruing or arising in India under Section 9(1)(i).
In case of any failure, the Indian concern shall be liable to pay a penalty under section 271GA.
- What is the amount of penalty levied under section 271GA?
- 2% of the value of the transaction in respect of which such failure has taken place, if such transaction had the effect of transferring the right of management or control in relation to the India concern, whether directly or indirectly;
- a sum of Rs. 5,00,000 in any other case.
- When penalty under Section 271GB(1) may be imposed? Section 286 of the Income-tax Act requires a parent entity resident in India or an alternate reporting entity resident in India to furnish a ‘Country by Country Report’ (CbCR) in respect of the international group of which it is a constituent in Form 3CEAD. The penalty under section 271GB(1) may be imposed if a reporting entity fails to furnish a report in Form No. 3CEAD.
- Where the period of failure does not exceed 1 month, Rs. 5,000 for every day for which the failure continues;
- Where the period of failure exceeds 1 month, Rs. 15,000 for every day for which the failure continues; and
- Where the failure continues after service of the order to pay penalty, Rs. 50,000 for every day beginning from the date of service of such order.
- When penalty under Section 271GB(2) may be imposed? Penalty under Section 271GB(2) may be imposed if a reporting entity fails to produce the information or documents, as required by the Director-General of Income-tax, within the period allowed for it.
- Rs. 5,000 for every day during which the failure continues. The penalty shall be levied from the day immediately following the day on which the period allowed for it expires; and
- If the failure continues after service of an order to pay penalty, Rs. 50,000 for every day beginning from the date of service of such order.
Penalty under Section 271GB(4) may be imposed if a reporting entity provides inaccurate information in the report furnished and:
- The entity has knowledge of the inaccuracy at the time of furnishing the report but fails to inform the Director-General of Income-tax;
- The entity discovers the inaccuracy after the report is furnished but fails to inform the Director-General and fails to furnish a correct report within 15 days of such discovery; or
- The entity furnishes inaccurate information or document in response to the notice issued.
- What is the amount of penalty levied under section 271GB(4)? Rs. 5,00,000
- When penalty under Section 271H may be imposed? Penalty under Section 271H may be imposed if a person fails to furnish the TDS Statement or TCS Statement on or before the due dates or furnishes inaccurate information in such Statements.
- What is the amount of penalty levied under section 271H? Penalty shall not be less than Rs. 10,000 but may extend to Rs. 1,00,000.
- When penalty under Section 271-I may be imposed? Penalty under Section 271-I may be imposed if a person, responsible for paying to a non-resident, fails to furnish information in Form 15CA or Form 15CB or Form 15CC, as the case may be, or furnishes inaccurate information.
- What is the amount of penalty levied under section 271-I? Rs. 1,00,000
- When penalty under Section 271J may be imposed? Penalty under Section 271J may be imposed if a Chartered Accountant, a Merchant Banker or a registered valuer furnishes incorrect information in a report or certificate under any provisions of the Act or the rules made thereunder.
- What is the amount of penalty levied under section 271J? Rs. 10,000 for each incorrect report or certificate
- When penalty under Section 271K may be imposed? Penalty under Section 271K may be imposed on failure to deliver a statement of donation or on failure to furnish a certificate of donation by the following institutions:
- A research association, university, college or other institutions as referred to in Section 35(1)(ii) or Section 35(1)(iii);
- A company referred to in Section 35(1)(iia); or
- Any institution or fund referred to in Section 80G.
- What is the amount of penalty levied under section 271K? Penalty shall not be less than Rs. 10,000 but may extend to Rs. 1,00,000.
Any person who commits any of the following defaults is liable to pay a penalty under section 272A(1):
- Refusal to answer a question put to a person (who is legally bound to state the truth of any matter relating to his assessment) by an income-tax authority;
- Refusal to sign any statement made by him in the course of any proceedings under this Act;
- Failure to comply with summons issued under Section 131(1) to attend the office to give evidence and produce books of account or other documents;
- Failure to comply with a notice under Section 142(1) for enquiry before an assessment or Section 143(2) for scrutiny assessment;
- Failure to comply with the direction issued under Section 142(2A) for special audit.
- What is the amount of penalty levied under section 272A(1)? Rs. 10,000 for each failure/default
Any person who commits any of the following defaults is liable to pay a penalty under section 272A(2):
| Section | Description |
| 94(6) | Failure to furnish information within the prescribed time-limit by any person in respect of shares or securities held by him |
| 176(3) | Failure to give notice of discontinuance of business or profession within 15 days |
| 133 | Failure to furnish information required by the Assessing Officer |
| 134 | Failure to allow inspection of register or any entry in such register or failure to allow copies of such register or any entries therein to be taken |
| 139(4A) | Failure to furnish the return of a charitable trust within the prescribed time-limit |
| 139(4C) | Failure to furnish the return of other institutions within the prescribed time-limit |
| 192(2C) | Failure to furnish a statement giving correct and complete particulars of perquisites or profits in lieu of salary provided by an employer to his employees |
| 197A | Failure to deliver in due time a copy of the declaration furnished for nil deduction of tax |
| 203 | Failure to issue a TDS Certificate |
| 206A | Failure to deliver the quarterly statement by a banking company or a co-operative society or a specified public company |
| 206C | Failure to issue a TCS Certificate |
| 206C(1A) | Failure to furnish a copy of the declaration by the buyer of forest produce or alcoholic liquor in due time to the effect that no tax to be collected |
| 226(2) | Failure to deduct tax at source from salary income as directed by the Tax Recovery Officer |
| 285B | Failure to furnish statement within the prescribed time by any person carrying on the production of a cinematograph films or engaged in any specified activity, or both, showing payments exceeding Rs 50,000 made by him or due from him to any person engaged by him in such production or specified activity |
Rs. 500 for every day during which failure continues.
However, the maximum penalty under this provision shall not exceed the amount of tax-deductible or collectible, as the case may be, for failure in relation to a declaration mentioned in Section 197A or TDS/TCS certificate.
- When penalty under Section 272AA shall be imposed? The Income-tax authorities are empowered under Section 133B to enter the place of business of the taxpayer to collect information which may be useful under the Act. The information required to be furnished shall be furnished in Form 45D. If a person fails to furnish such information, a penalty shall be imposed on him under section 272AA.
- What is the amount of penalty levied under section 272AA? Not exceeding Rs. 1,000
Penalty under Section 272B may be imposed for the following defaults:
- Failure to apply for Permanent Account Number (PAN), if it is required to be applied;
- Failure to quote PAN or Aadhaar in returns, challans etc.;
- Failure to intimate PAN or Aadhaar to the person responsible for deduction or collection of tax;
- Quoting or intimating a PAN or Aadhaar which is false or and which he either knows or believes to be false or does not believe to be true;
- Failure to quote PAN or Aadhaar in documents pertaining to financial transactions as prescribed under Rule 114B;
- Failure to authenticate PAN or Aadhaar;
- Obtaining multiple PAN.
- What is the amount of penalty levied under section 272B? Rs. 10,000 for each default
Penalty under Section 272BB may be imposed in the following circumstances:
- If a person, responsible for deduction or collection of tax at source, fails to apply for Tax Deduction and Collection Account Number (TAN);
- If a person fails to quote TAN on the documents on which it is required to be quoted; or
- If a person quotes a TAN which is false, and which he either knows or believes to be false or does not believe to be true.