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Penalties under Income Tax Act




Section
Nature of Default
Basis of Charge
Quantum of penalty


221(1)
Failure to pay tax; i.e., non-payment of tax required by notice u/s. 156.
--
Amount of tax in arrears


271(1)(b)
Non-compliance with notice u/s. 142(1) to file returns or to produce documents required by assessing officer or u/s. 143(2) to produce evidence on which assessee relies or u/s. 142(2A) to get accounts audited.
--
Rs. 10,000


271(1)(c)
Concealment of the particulars of income, or furnishing inaccurate particulars thereof.
Tax sought to be evaded
100 % to 300 % of tax sought to be evaded


271A
Failure to maintain books or documents u/s. 44AA.
--
Rs. 25,000


271AA
Failure to keep and maintain information and documents u/s. 92D.
International transaction
2% of International transaction


271B
Failure to get accounts audited and furnish Tax Audit Report as required u/s. 44AB.
Total Sales, Turnover, or Gross Receipts
0.5% of total sales, turnover or gross receipts, or Rs. 1,00,000 whichever is less


271BA
Failure to furnish a report as required u/s. 92E.
--
Rs. 1,00,000


271C
Failure to deduct the whole or part of the tax as required by or under Chapter XVII-B (Ss. 192 to 196D) or failure to pay the whole or part of tax u/s. 115-O.
Tax failed to be deducted
Equal to the amount failed to be deducted


271D
Contravention of the provisions of S. 269SS; i.e., by taking or accepting any loan or deposit otherwise than by ways specified therein.
Amount of loan or deposit so taken or accepted
Equal to the amount of loan or deposit so taken or accepted


271E
Contravention of S. 269T; i.e. repayment of any deposit otherwise than by modes specified therein.
Amount of deposit so repaid
Equal to the amount of deposit so repaid


271F
Failure to furnish Return of Income under sub-section (1) of S. 139 before the end of the relevant Assessment Year.
--
Rs. 5,000


Failure to furnish Return of Income under proviso to sub-section (1) of S. 139 by the due date.
--
Rs. 5,000



271G
Failure to furnish information or document u/s. 92D (3).
International transaction
2 % of such default.


272A(1)
Failure to answer questions, sign statements, attend summons u/s. 131(1), apply for permanent account number u/s. 139A.
--
Rs. 10,000


272A(2)
Failure to:

Rs. 100 for every day during which the failure continues.


Comply with notice u/s. 94(6) furnishing information regarding securities


Give notice of discontinuance of business - S. 176(3)


Furnish in due time returns, statements, or particulars u/s. 133, 206 or 285B


Allow inspection of any register(s) - S. 134


Furnish returns u/s. 139(4A)


Deliver in due time a declaration mentioned in S. 197A


Furnish a certificate u/s. 203.


Deduct and pay tax u/s. 226(2)


Furnish returns/ statements/ certificate u/s. 206C


Furnish a statement of particulars of perquisites and profits in lieu of salary u/s. 192(2C)


272AA(1)
Failure to furnish the prescribed information required u/s. 133B (Refer to Form No. 45D).
--
Rs. 1,000


272B
Failure to apply for Permanent Account Number (PAN)
--
Rs. 10,000


272BB(1)
Failure to apply for Tax Deduction Account No. (TAN) (S. 203A)
--
Rs. 10,000


272BBB
Failure to apply for Tax Collection Account No. (TCN)
--
Rs. 10,000




Note:
No penalty is imposable for any failure u/ss. 271(1)(b), 271A, 271AA, 271B, 271BA, 271BB, 271C, 271D, 271E, 271F, 271G, 272A(1)(c) or (d), 272(2), 272AA(1), 272B, 272BB(1) and 272BBB(1), if the person or assessee proves that there was a reasonable cause for such failure (S. 273B).

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