Updated Penalty Chart under Income Tax Act, 1961

An assessee who commits an offence under the provisions of The Income Tax Act, 1961 shall be subject to penalty. The penalty is an additional amount levied and is different from the tax payable. Penalty is levied based on the law at the time of the offence being committed and not as it stands in the financial year for which the assessment is being made. The list of penalties levied under the Income Tax Act, 1961 are:

PENALTIES

[AY 2022-23]

SectionNature of defaultPenalty leviable
(1)(2)(3)
140A(3)Failure to pay wholly or partly—Such amount as Assessing Officer may impose but not exceeding tax in arrears
 (a) self-assessment tax/fringe benefit tax, or
 (b) interest, and fee, or
 (c) both
 under section 140A(1)
158BFA(2)Determination of undisclosed income of block periodMinimum : 100 per cent of tax leviable in respect of undisclosed income
  Maximum : 300 per cent of tax leviable in respect of undisclosed income.
221(1)Default in making payment of taxSuch amount as Assessing Officer may impose but not exceeding amount of tax in arrears
234EFailure to file statement within time prescribed in section 200(3) or in proviso to section 206C(3)Rs. 200 for every day during which failure continues but not exceeding tax deductible/collectible
234FDefault in furnishing return of income within time as prescribed under section 139(1)Rs. 5,000 if return is furnished after due date specified under section 139(1). However if the total income of the person does not exceed Rs. 5 lakhs then Rs. 1,000 shall be the late filing fees.
234GFee for default in submission of statement/certificate prescribed under section 35/Section 80GRs. 200 per day
234HFee for default in intimating the Aadhaar NumberMaximum of Rs. 1,000
270A(1)Under-reporting and misreporting of incomeA 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
271(1)(b)Failure to comply with a notice under section 115WD(2)/115WE(2)/142(1) or section 143(2) or failure to comply with a direction under section 142(2A)Fixed at Rs. 10,000 for each failureNote:– However, the above penalty shall not be levied to and in relation to any assessment for the A.Y commencing on or after the 1st day of April, 2017.
271(4)Distribution of profits by registered firm otherwise than in accordance with partnership deed and as a result of which partner has returned income below the real incomeNot exceeding 150 per cent of difference between tax on partner’s income assessed and tax on income returned, in addition to tax payableNote:- However, the above penalty shall not be levied to and in relation to any assessment for the A.Y commencing on or after the 1st day of April, 2017.
271AFailure to keep, maintain, or retain books of account, documents, etc., as required under section 44AARs. 25,000
271AA(1)(1) Failure to keep and maintain information and documents required by section 92D(1) or 92D(2)2% of value of each international transaction/or specified domestic transaction entered into
 (2) Failure to report such transaction
 (3) Maintaining or furnishing incorrect information or document
271AA(2)Failure to furnish information and document as required under Section 92D(4)Rs. 5,00,000/-
271AAAWhere search has been initiated before 1-7-2012 and undisclosed income found10% of undisclosed income
271AAB(1)Where search has been initiated on or after 1-7-2012 but before 15-12-2016 and undisclosed income found(a) 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
(b) 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;
(c) 60% of undisclosed income of the specified previous year if it is not covered by (a) or (b) above
271AAB(1A)Where search has been initiated on or after 15-12-2016 and undisclosed income found(a) 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(b) 60% of undisclosed income of the specified previous year in any other case.
271AACIncome determined by Assessing Officer includes any income referred to in section 68section 69section 69Asection 69Bsection 69C or section 69D for any previous year. [if such income is not included by assessee in his return or tax in accordance with section 115BBE has not been paid]10% of tax payable under section 115BBE.
271AADPenalty, if during any proceedings under the Act, it is found that in the books of accounts maintained by assessee, there is:a) A false entry; orb) Any entry relevant for computation of total income of such person has been omitted to evade tax liability.100% of such false entries or omitted entry
271BFailure to get accounts audited or furnish a report of audit as required under section 44ABOne-half per cent of total sales, turnover or gross receipts, etc., or Rs. 1,50,000, which-ever is less
271BAFailure to furnish a report from an accountant as required by section 92ERs. 1,00,000
271BBFailure to subscribe any amount to units issued under scheme referred to in section 88A(1)20 per cent of such amount
271CFailure to deduct tax at source, wholly or partly, under sections 192 to 196D (Chapter XVII-B) or second proviso to section 194BAmount equal to tax not deducted or paid
271CAFailure to collect tax at source as required under Chapter XVII-BBAmount equal to tax not collected
271DTaking or accepting any loan or deposit or specified sum in contravention of the provisions of 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.Amount equal to loan or deposit or specified sum so taken or accepted
271DAReceipt of an amount of Rs. 2 lakh or more in contravention of provisions of Section 269ST.Amount equal to such receipt
271DBFailure to provide facility for accepting payment through prescribed electronic modes of payment as referred to in section 269SURs. 5,000 rupees for every day of default
271ERepayment of any loan or deposit or specified advance otherwise than in accordance with provision of Section 269T.”Specified advance” means any sum of money in the nature of advance, by whatever name called, in relation to transfer of an immovable property, whether or not transfer takes place.Amount equal to loan or deposit or specified advance so repaid
271FA1Failure to furnish an annual information return as required under section 285BA(1)2Rs. 500 per day of default
271FAA1Furnishing of inaccurate information in statement of financial transaction or reportable accountRs. 50,000
 Failure to furnish annual information return within the period specified in notice u/s 285BA(5)Rs. 1,000 per day of default
271FABSection 9A provides that fund management activity carried out by an eligible offshore investment fund through an eligible fund manager acting on behalf of such fund shall not constitute business connection in India (subject to certain conditions).The provision requires that eligible investment fund shall furnish within 90 days from the end of the financial year a statement, in respect of its activities in a financial year, in the prescribed form containing information relating to fulfilment of specified conditions and such other information or documents as may be prescribed. Penalty to be levied if investment fund failed to comply with the requirement.Rs. 5,00,000
271G3Failure to furnish any information or document as required by section 92D(3)2% of the value of the international transaction/specified domestic transaction for each failure
271GASection 285A provides for reporting by an Indian concern if following two conditions are satisfied:a) Shares or interest in a foreign company or entity derive substantial value, directly or indirectly, from assets located in India; andb) 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 penalty.Penalty shall be:a) a sum equal to 2% of value of transaction in respect of which such failure has taken place, if such transaction had effect of, directly or indirectly, transferring right of management or control in relation to the Indian concern;b) a sum of Rs. 5,000 in any other case.
271GB(1)Failure to furnish report under section 286(2)Rs. 5,000 per day upto 30 days and Rs. 15,000 per day beyond 30 days
271GB(2)Failure to produce the information and documents within the period allowed under section 271GB(6)Rs. 5,000 for every day during which the failure continues.
271GB(3)Failure to furnish report or failure to produce information/documents under section 286 even after serving order under section 271GB(1) or 271GB(2)Rs. 50,000 for every day for which such failure continues beginning from the date of serving such order.
271GB(4)Failure to inform about inaccuracy in report furnish under section 286(2)Rs. 5,00,000
 Or furnishing of inaccurate information or document in response to notice issued under section 286(6). 
271H4Failure to deliver/cause to be delivered a statement within the time prescribed in section 200(3) or the proviso to section 206C(3), or furnishes incorrect information in the statementW.e.f. 1-10-2014 Assessing Officer may direct payment of penalty. Penalty shall not be less than Rs. 10,000 but may extend to Rs. 1,00,000
271K4Penalty of default in submission of statement/certificate prescribed under section 35/Section 80GRs. 10,000 to Rs. 1 lakh
271-IAs per section 195(6) of the Act, any person responsible for paying to a non-resident or to a foreign company, any sum (whether or not chargeable to tax), shall furnish the information relating to such payment in Form No. 15CA and 15CB. Penalty shall be levied in case of any failure.Rs. 1,00,000
271JFurnishing of incorrect information in any report or certificate by an accountant or a merchant banker or a registered valuerRs. 10,000 for each incorrect report or certificate
272A(1)Refusal or failure to :Rs. 10,000 for each failure/default
 (a) answer questions
 (b) sign statement
 (c) attend to give evidence or produce books of account, etc., in compliance with summons under section 131(1)
 (d)  comply with notices u/s 142(1)/143(2) or failure to comply with direction issued u/s 142(2A).
272A(2)Failure to : 
 (a) furnish requisite information in respect of securities as required under section 94(6) ;Rs. 10,000 for each failure/default. (In respect of penalty for failure, in relation to a declaration mentioned in section 197A, a certificate as required by section 203 and returns u/ss 206 and 206C and statements under Section 200(2A) or section 200(3) or proviso to section 206C(3) or section 206C(3A), penalty shall not exceed amount of tax deductible or collectible)
 (b) give notice of discontinuance of business or profession as required under section 176(3) ;
 (c) furnish in due time returns, statements or certificates, deliver de-claration, allow inspection, etc., under sections 133134139(4A)139(4C)192(2C)197A203206206C206C(1A) and 285B;
 (d) deduct and pay tax under section 226(2)
 (e) file a copy of the prescribed statement within the time specified in section 200(3) or the proviso to section 206C(3) (up to 1-7-2012)
 (f) file the prescribed statement within the time specified in section 206A(1)(g) Failure to deliver or cause to be delivered a statement under Section 200(2A) or Section 206C(3A) within prescribed time.     With effect from June 1, 2015, it is mandatory for an office of the Government, paying TDS or TCS, as the case may be, without production of a challan, to deliver a statement in the prescribed form and manner to the prescribed authority.
272AA(1)Failure to comply with section 133BNot exceeding Rs. 1,000
272BFailure to comply with provisions relating to PAN or Aadhar as referred to in section 139A/139A(5)(c)/(5A)/(5C)Rs. 10,000 for each default
272BB(1)Failure to comply with section 203ARs. 10,000 for each failure/default
272BB(1A)Quoting false tax deduction account number/tax collection account number/tax deduction and collection account number in challans/certificates/statements/documents referred to in section 203A(2)Rs. 10,000

Note : No penalty is imposable for any failure under sections 271(1)(b)271A271AA271B271BA271BB271C271CA271D271E271F271FA271FAB271FB271G271GA271GB271H271-I272A(1)(c) or (d), 272A(2)272AA(1)272B272BB(1)272BB(1A)272BBB(1)273(1)(b)273(2)(b) and 273(2)(c) if the person or assessee proves that there was reasonable cause for such failure (section 273B).

Section 273AA provides that a person may make application to the Principal Commissioner/Commissioner for granting immunity from penalty, if (a) he has made an application for settlement under section 245C and the proceedings for settlement have abated; and (b) penalty proceeding have been initiated under this Act. The application shall not be made after the imposition of penalty after abatement.

1. With effect from assessment year 2015-16 “annual information return” has been changed to “statement of financial transaction or reportable account” and word “return” has been changed to “statement”.

2. With effect from assessment year 2015-16 a new section 271FAA has been inserted to provide for a penalty of Rs. 50,000 for furnishing inaccurate statement of financial transaction or reportable account in certain cases.

3. With effect from 1-10-2014 TPO can also levy penalty.

4. Section 271H as amended with effect from 1-10-2014 provides that penalty shall be levied by Assessing Officer.

[As amended by Finance Act, 2021]