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Penalties under Income Tax Act

Nature of Default
Basis of Charge
Quantum of penalty

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

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

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

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

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

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

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

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

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

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

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

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

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

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)

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

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

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

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

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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