Prosecution for contravention of the order restricting the handling of seized assets [Section 275A] Nature of Default During search operations, if it is not practicable to seize any valuable article, thing, book of account or document due to physical constraints, the authorized officer may issue an order directing the person not to remove or deal… Read More »
Prosecution for Offences The income-tax authorities can initiate prosecution for offences specified under various sections. Imprisonment and fines vary depending on the nature of the offence. Key Offences and Punishments Section Description Period of Imprisonment 275A Contravention of the order restricting the handling of seized assets Up to 2 years (and fine) 275B Non-compliance with… Read More »
Time Limit for Completion of Penalty Proceedings Section 275 of the Income Tax Act specifies the time limits within which the tax authorities must pass penalty orders. The prescribed time limits vary depending on the appellate or revision status of the related assessment or other proceedings. Cases where assessment or other order is not subject to… Read More »
Faceless Penalty Scheme Scope and Applicability The scheme applies to penalty proceedings relating to specified territorial areas, persons, income, or cases. The following are excluded: Penalty proceeding in cases assigned to Central Charges, International Tax Charges, TDS Charges [Order F. NO. 187/4/2021-ITA-I, dated 20-1-2021], Penalty proceedings arising/pending in the Investigation Wing, and DG (Risk Assessment)… Read More »
Procedure to Impose Penalty Opportunity of Being Heard Before imposing any penalty, the assessee must be given a reasonable opportunity of being heard. Approval Requirement for Imposing Penalty Income-tax Officer requires prior approval of the Joint Commissioner if the proposed penalty exceeds ₹10,000. Assistant Commissioner or Deputy Commissioner requires prior approval of the Joint Commissioner… Read More »
Power to Reduce or Waive Penalty For Penalty under Section 270A Reduction or waiver of penalty under Section 270A may be granted by the Principal Commissioner or Commissioner, subject to the following: Voluntary Disclosure:The assessee must have made true and full disclosure of under-reported income voluntarily and in good faith before its detection by the Assessing Officer. Co-operation:The… Read More »
Penalty for Failure to Apply or Quote TAN Nature of Default The penalty can be imposed in the following circumstances: Failure to apply for TAN when required under law; Failure to quote TAN on documents where quoting is mandatory; Quoting a false TAN, knowingly or with belief that it is false or not believed to… Read More »
Penalty for Failure to Comply with the Provisions of PAN Nature of Default The penalty can be imposed for the following defaults: • Failure to apply for PAN when required. • Failure to quote PAN or Aadhaar in returns, challans, or other documents. • Failure to intimate PAN or Aadhaar to the deductors or collectors… Read More »
Penalty for Failure to Furnish Information Required under Section 133B Nature of Default A penalty is levied if any person fails to furnish the information required in Form 45D by the Income Tax Authorities, who have entered into a place of business to collect certain information. Quantum of Penalty • The Joint Commissioner, Assistant Director, Deputy Director,… Read More »
Penalty for Failure to Co-operate or Comply with Statutory Requirements Nature of Default and its Penalty • Any person who commits any of the following defaults is liable to pay a penalty of Rs. 10,000 for each such default or failure: Refusal to answer questions legally required by the Income Tax Authorities. Refusal to sign… Read More »