Penalties under the Income-tax Act
Penalties Imposable
Penalties are imposed on assessees for specific defaults as enumerated under different sections of the Act. Some penalties are mandatory, while others are discretionary. Key penalties include:
|
Section |
Description |
Penalty Amount |
|
221 |
Default in payment of tax within the prescribed time |
Up to the tax amount in arrears |
|
270A |
Under-reporting of income |
50% of tax on underreported income |
|
270A |
Misreporting of income |
200% of tax on underreported income |
|
271A |
Failure to maintain books of account/documents as required under section 44AA |
Rs. 25,000 |
|
271AA |
Failure to maintain or furnish prescribed transfer pricing documents or furnishing incorrect info |
2% of transaction value or Rs. 5,00,000 where applicable |
|
271AAB |
Undisclosed income in search (15-12-2016 to 31-08-2024) |
30% or 60% of undisclosed income |
|
271AAC |
Tax on unexplained income under Section 115BBE |
10% of tax payable on unexplained income |
|
271AAD |
False entries in books or omission to evade tax |
Aggregate amount of false or omitted entries |
|
271AAE |
Violation by fund/trust reapplication of income under section 13(1)(c) |
First violation: income applied; subsequent: double amount |
|
271B |
Failure to get accounts audited under section 44AB |
0.5% of turnover or Rs. 1,50,000, whichever is less |
|
271BA |
Failure to furnish transfer pricing audit report under section 92E |
Rs. 1,00,000 |
|
271C |
Failure to deduct or pay TDS/TCS or tax on income in kind |
100% of tax not deducted or paid |
|
271CA |
Failure to collect tax at source |
100% of tax not collected |
|
271D |
Acceptance of loan/deposit in contravention of Section 269SS |
100% of amount accepted |
|
271DA |
Receipt of Rs. 2,00,000 or more in cash in contravention of Section 269ST |
100% of amount received |
|
271DB |
Failure to provide electronic payment facility under Section 269SU |
Rs. 5,000 per day of default |
|
271E |
Repayment of loan/deposit in contravention of Section 269T |
100% of amount repaid |
|
271FA |
Failure to furnish Statement of Financial Transaction or Reportable Account |
Rs. 500 to Rs. 1,000 per day of default |
|
271FAA |
Furnishing inaccurate information in the Statement of Financial Transaction or Reportable Account |
Rs. 50,000; plus Rs. 5,000 per inaccurate reportable account |
|
271FAB |
Failure to furnish Form 3CEK by eligible investment funds |
Rs. 5,00,000 |
|
271G |
Failure to furnish information/documents related to international/specified domestic transactions |
2% of transaction value per failure |
|
271GA |
Failure by Indian concern to furnish info under Section 285A |
2% of transaction value or Rs. 5,00,000 |
|
271GB |
Failure to furnish/produce reports or info under Section 286 |
Rs. 5,000 to Rs. 50,000 per day depending on default period |
|
271H |
Failure to furnish TDS/TCS statements or inaccurate info |
Rs. 10,000 (up to Rs. 1,00,000) |
|
271-I |
Failure to furnish info regarding payments to non-residents |
Rs. 1,00,000 |
|
271J |
Furnishing inaccurate reports/certificates by specified professionals |
Rs. 10,000 per report/certificate |
|
271K |
Failure to furnish donation statement or issue certificate |
Rs. 10,000 (up to Rs. 1,00,000) |
|
272A |
Failure to cooperate or comply with statutory requirements |
Rs. 10,000 per default or Rs. 500 per day continuing default |
|
272AA |
Failure to furnish info to tax authorities entering place of business |
Up to Rs. 1,000 |
|
272B |
Failure to obtain or quote PAN/Aadhaar where required |
Rs. 10,000 per default |
|
272BB |
Failure to obtain or quote TAN |
Rs. 10,000 |