NEW INCOME TAX PENALTIES UNDER INCOME TAX ACT 2025
Based on the information from Income-tax Act, 2025, here is a comprehensive table detailing the various sections for penalties, their nature, and the corresponding amounts:
| Section | Nature of Default / Offence | Amount / Quantum of Penalty |
|---|---|---|
| 298(2) | Undisclosed income determined during a block period (search cases). | 50% of the tax leviable on the undisclosed income. |
| 412(1) | Assessee is in default or deemed to be in default in making a tax payment. | As directed by the Assessing Officer, but not exceeding the amount of tax in arrears. |
| 439(9) & (10) | Under-reporting or misreporting of income. | 50% of the tax payable on under-reported income. If under-reporting is due to misreporting, it increases to 200% of the tax payable. |
| 441 | Failure to keep, maintain, or retain books of account and documents. | ₹ 25,000. |
| 442(1) | Failure to keep/maintain information and documents for international/specified domestic transactions, or furnishing incorrect information. | 2% of the value of each such transaction. |
| 442(2) | Failure to furnish information and documents required under section 171(4). | ₹ 5,00,000. |
| 443(1) | Income includes unexplained investments, money, credits, assets, or expenditures (Sections 102 to 106). | 10% of the tax payable under section 195(1)(i). |
| 444(1) & (2) | Making a false entry or omitting a relevant entry in the books of account to evade tax liability. | Equal to the aggregate amount of the false or omitted entry. |
| 445 | A registered non-profit organization applying its income for the benefit of a related person. | Equal to the aggregate amount applied for the benefit (first time); 200% of the aggregate amount if the violation is noticed again in subsequent years. |
| 446 | Failure to get accounts audited or to furnish the audit report. | 0.5% of total sales, turnover, or gross receipts, OR ₹ 1,50,000, whichever is less. |
| 447 | Failure to furnish an accountant’s report as required under section 172. | ₹ 1,00,000. |
| 448 | Failure to deduct tax at source (TDS) or ensure its payment. | Equal to the tax which the person failed to deduct or pay. |
| 449(1) | Failure to collect tax at source (TCS). | Equal to the tax which the person failed to collect. |
| 450 | Taking or accepting any loan, deposit, or specified sum in contravention of section 185. | Equal to the amount of the loan, deposit, or specified sum taken or accepted. |
| 451 | Receiving a sum in contravention of section 186. | Equal to the sum received in contravention. |
| 452 | Failure to provide a facility for accepting payments through prescribed electronic modes (section 187). | ₹ 5,000 for every day the failure continues. |
| 453 | Repaying any loan, deposit, or specified advance in contravention of section 188. | Equal to the loan, deposit, or specified advance so repaid. |
| 454(1) & (2) | Failure to furnish a statement of financial transaction or reportable account. | ₹ 500 for every day the failure continues; increases to ₹ 1,000 per day if not furnished within the period specified in a notice. |
| 455(1) & (2) | Providing inaccurate information in a statement of financial transaction or reportable account. | ₹ 50,000. (An additional ₹ 5,000 per inaccurate account applies to reporting financial institutions if caused by the account holder’s false info). |
| 456 | Failure by an eligible investment fund to furnish a statement, information, or document. | ₹ 5,00,000. |
| 457 | Failure to furnish information or documents under section 171(2) regarding international/specified domestic transactions. | 2% of the value of such transaction. |
| 458 | Failure by an Indian concern to furnish information/documents under section 506. | 2% of the transaction value (if it transfers management/control rights); OR ₹ 5,00,000 in any other case. |
| 459(1) to (4) | Failure by a reporting entity to furnish a report under section 511, or furnishing an inaccurate report. | ₹ 5,000/day (up to 1 month); ₹ 15,000/day (beyond 1 month); ₹ 50,000/day (if failure continues after penalty order). For inaccurate report: ₹ 5,00,000. |
| 460 | Failure to submit a statement under section 505. | ₹ 1,000/day (if failure does not exceed 3 months); OR ₹ 1,00,000 in any other case. |
| 461(1) | Failure to deliver statements under section 397(3)(b) or furnishing incorrect information. | Between ₹ 10,000 and ₹ 1,00,000. |
| 462 | Failure to furnish information or furnishing inaccurate information under section 397(3)(d). | ₹ 1,00,000. |
| 463(1) | Incorrect information in reports or certificates furnished by an accountant, merchant banker, or registered valuer. | ₹ 10,000 for each such report or certificate. |
| 464 | Failure to furnish statements or documents by a research association, university, college, institution, or fund. | Between ₹ 10,000 and ₹ 1,00,000. |
| 465(1) | Refusal to answer questions, sign statements, or failure to comply with summons to attend/produce evidence. | ₹ 10,000 for each default or failure. |
| 465(2) | Failure to comply with specific notices (e.g., discontinuance of business), allow inspections, or furnish specific returns/statements. | ₹ 500 for every day during which the failure continues. |
| 466 | Failure to comply with the provisions of section 254 (providing information to Income-tax authority). | Up to ₹ 1,000. |
| 467(1) to (4) | Failure to comply with section 262, quoting a false PAN/Aadhaar, or failure to ensure correct quoting/authentication. | ₹ 10,000 for each such default. |
| 468 | Failure to comply with section 397 or quoting a false Tax Deduction and Collection Account Number (TAN). | ₹ 10,000. |