Section 455 Income Tax Act 2025
Penalty for furnishing inaccurate statement of financial transaction or reportable account.
455. (1) The prescribed income-tax authority referred to in section 508 may direct that a person required to furnish a statement under sub-section (1) of the said section shall pay penalty of ₹ 50000, if such person—
| (a) | | provides inaccurate information in the statement or fails to furnish correct information within the period specified under section 508(8); or |
| (b) | | fails to comply with the due diligence requirement under section 508(9). |
(2) The prescribed income-tax authority referred to in section 508, shall direct that reporting financial institution referred to in section 508(1)(k) of the, shall, in addition to the penalty under sub-section (1) of this section, if any, pay a sum of ₹ 5000 for every inaccurate reportable account, if—
| (a) | | the said institution provides inaccurate information in the statement required to be furnished under section 508(1); and |
| (b) | | the inaccuracy in the said statement is due to false or inaccurate information furnished by the holder or holders of the relevant reportable account or accounts. |
(3) The reporting financial institution as referred to in sub-section (2) shall be entitled to—
| (a) | | recover the amount paid under sub-section (2) on behalf of the reportable account holder; or |
| (b) | | retain an amount equal to the sum so paid out of any moneys that may be in its possession, or may come to it from every such account holder. |