Penalties under the Income Tax Act, 1961

Sl. No.

Section

Nature of default

Penalty leviable

1

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)

2

158BFA(2)

Determination of undisclosed income of block period

Minimum : 100 per cent of tax leviable in respect of undisclosed income

Maximum : 300 per cent of tax leviable in respect of undisclosed income.

3

221(1)

Default in making payment of tax

Such amount as Assessing Officer may impose but not exceeding amount of tax in arrears

4

234E

Failure 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

5

234F

Default in furnishing statement 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.

6

234G

Fee for default in submission of statement /certificate prescribed under section 35/Section 80G

Rs. 200 per day

7

234H

Fee for default in intimating the Aadhaar Number

Maximum of Rs. 1,000

8

270A(1)

Under-reporting and misreporting of income

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

9

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 failure

Note:– 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.

10

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 income

Not exceeding 150 per cent of difference between tax on partner’s income assessed and tax on income returned, in addition to tax payable

Note:- 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.

11

271A

Failure to keep, maintain, or retain books of account, documents, etc., as required under section 44AA

Rs. 25,000

12

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

13

271AA(2)

Failure to furnish information and document as required under Section 92D(4)

Rs. 5,00,000/-

14

271AAA

Where search has been initiated before 1-7-2012 and undisclosed income found

10% of undisclosed income

15

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 statement 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 statement 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

16

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 statement 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.

17

271AAC

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 assessee in his return or tax in accordance with section 115BBE has not been paid]

10% of tax payable under section 115BBE.

18

271AAD

Penalty, 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; or

b) 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

19

271B

Failure to get accounts audited or furnish a report of audit as required under section 44AB

One-half per cent of total sales, turnover or gross receipts, etc., or Rs. 1,50,000, which-ever is less

20

271BA

Failure to furnish a report from an accountant as required by section 92E

Rs. 1,00,000

21

271BB

Failure to subscribe any amount to units issued under scheme referred to in section 88A(1)

20 per cent of such amount

22

271C

Failure to deduct tax at source, wholly or partly, under sections 192 to 196D (Chapter XVII-B) or second proviso to section 194B

Amount equal to tax not deducted or paid

23

271CA

Failure to collect tax at source as required under Chapter XVII-BB

Amount equal to tax not collected

24

271D

Taking 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

25

271DA

Receipt of an amount of Rs. 2 lakh or more in contravention of provisions of Section 269ST.

Amount equal to such receipt

26

271DB

Failure to provide facility for accepting payment through prescribed electronic modes of payment as referred to in section 269SU

Rs. 5,000 rupees for every day of default

27

271E

Repayment 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

28

271FA

Failure to furnish an statement of financial transaction or reportable account as required under section 285BA(1)2

Rs. 500 per day of default

29

271FAA

Furnishing of inaccurate information in statement of financial transaction or reportable account

Rs. 50,000

Failure to furnish statement of financial transaction or reportable account within the period specified in notice u/s 285BA(5)

Rs. 1,000 per day of default

30

271FAB

Section 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

31

271G

Failure 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

32

271GA

Section 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; and

b) 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.

33

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

34

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.

35

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.

36

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).

37

271H

Failure 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 statement

W.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

38

271K

Penalty of default in submission of statement/certificate prescribed under section 35/Section 80G

Rs. 10,000 to Rs. 1 lakh

39

271-I

As 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

40

271J

Furnishing of incorrect information in any report or certificate by an accountant or a merchant banker or a registered valuer

Rs. 10,000 for each incorrect report or certificate

41

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).

42

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/s 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 declaration, allow inspection, etc., under sections 133, 134, 139(4A), 139(4C), 192(2C), 197A, 203, 206, 206C, 206C(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.

43

272AA(1)

Failure to comply with section 133B

Not exceeding Rs. 1,000

44

272B

Failure 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

45

272BB(1)

Failure to comply with section 203A

Rs. 10,000 for each failure/default

46

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)