23 February 2022
I have received a Notice for Penalty under section 274 read with section 272A(1)(d) stating that “You are required to show cause as to why an order imposing penalty of Rs. 10,000/- per default u/s 272A(1)(d) of the Income-tax Act,1961 should not be passed .” Request to help me to share the letter format for dropping the penalty
10 July 2024
When responding to a notice for penalty under section 272A(1)(d) of the Income-tax Act, 1961, it's crucial to provide a clear and detailed explanation to the tax authorities. Here’s a format you can use to draft your response:
The Assistant Commissioner of Income Tax [Address of the Tax Office] [City, State, PIN Code]
Subject: Response to Notice for Penalty under Section 272A(1)(d) of the Income-tax Act, 1961
Sir/Madam,
I am writing in response to the notice dated [Date] received from your office regarding the proposed penalty under section 272A(1)(d) of the Income-tax Act, 1961.
I respectfully submit the following points for your consideration:
1. **Background:** - Provide a brief background or context regarding the default(s) mentioned in the notice. Mention any relevant dates and transactions involved.
2. **Reasons for the Default:** - Explain the reasons why the default occurred. This could include inadvertence, technical issues, or any other genuine reasons. - If applicable, mention any steps taken to rectify the default promptly after becoming aware of it.
3. **Compliance History:** - Highlight your compliance history, particularly if there have been no previous penalties imposed or if the defaults were unintentional and promptly rectified.
4. **Supporting Documents:** - Enclose copies of relevant documents that support your explanation. This could include transaction records, communications with tax authorities, or any other relevant evidence.
5. **Request for Dropping Penalty:** - Respectfully request the tax authority to drop the proposed penalty considering the circumstances explained above and your compliance history.
6. **Conclusion:** - Express willingness to cooperate fully with the tax department and provide any further information or clarification required.
I trust that the above information adequately addresses the concerns raised in your notice. Please feel free to contact me at [Your Phone Number] or [Your Email Address] if you require any further clarification or information.
Thank you for your attention to this matter.
Yours faithfully,
[Your Name]
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**Note:** - Make sure to customize the letter as per your specific details and the content of the notice received. - Attach copies of any supporting documents mentioned in your response. - It’s advisable to send the response via registered post or courier to ensure delivery confirmation.
This format should help you draft a comprehensive response to the notice for penalty under section 272A(1)(d) of the Income-tax Act, 1961.
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