Summary chart for Penalties in Income Tax - Income Tax - Ready Reckoner - Income Tax

Summary chart for Penalties in Income Tax Section Nature of Default Penalty Leviable 221(1) Failure to pay wholly or partly Self-assessment tax, or Interest, or Both Under section 140A(1). Default in making payment of tax or interest or any demand. Failure to pay wholly or partly of the TDS/TCS amount. Such amount as Assessing Officer may impose but not exceeding tax and interest in arrears. [ Penalty under section 221(1) for being an assessee in default]. Maximum: Amount of tax in arrears. This is in addition to interest u/s 220 . 270A Penalty levied by AO, JC(A) CIT(A). for under-reporting and misreporting of income. Under-reporting - 50% of the amount of tax payable on under-reported income Misreporting - 200% of the amount of tax payable if the under-reported income is in consequence of any misreporting of income. 271A Penalty levied by AO or JC(A) CIT(A). Failure to keep, maintain, or retain books of account, documents, etc., as required by section 44AA or failure to retain such books of accounts or documents for the period specified in section 44AA. Rs.25,000. 271AA Penalty levied by AO CIT(A). In respect of international transaction or specified domestic transaction: Failure to keep and maintain any such information and document as required by section 92D(1) or section 92D(2). Failure to report such transaction which he is required to do so. Maintains or furnishes an incorrect information or document. 2% of the value of each international transaction or specified domestic transaction entered into by such person. 271AAA Income found in course of search under section 132 which is not recorded on or before the date of search in books of account or other. 10% of the undisclosed income. 271AAB Penalty levied by AO CIT(A). (A) Admission in the course of search of undisclosed income of the specified previous year in a statement u/s 132(4) (B) Undisclosed income not admitted in a statement u/s 132(4 ) in the course of search but declared in the return of income furnished for the specified previous year (C) In any other case 10% of the undisclosed income of the specified previous year 20% of the undisclosed income of the specified previous year 60% of the undisclosed income of the specified previous year 271AAC Penalty levied by AO or JC(A) CIT(A). For Unaccounted Income referred u/s 68 - 69D 10% of tax on unaccounted income u/s 115BBE 271AAD Penalty levied by AO or JC(A) CIT(A). On False entry or on omission of any entry which is relevant for computation of total income of such person, to evade tax liability. 100% of amount of such False entry or omitted entry. 271AAE Penalty levied by AO. On Any Trust referred u/s 11 or Institution u/s 10(23C) gives any benefit to related person u/s 13(1) 100% of Amount applied in case of 1 st time violation, 200% of Amount applied in case of subsequent violation. 271B Penalty levied by AO. Failure to get accounts audited or furnish a report of audit as required under section 44AB . 0.50% of total sales, turnover, or gross receipts, etc., or Rs. 1,50,000 , whichever is less. 271BA Penalty levied by AO. Failure to furnish a report from an Chartered Accountant as required by section 92E Rs. 1,00,000. 271C Penalty levied by Joint Commissioner. For. - Failure to deduct the whole or part of tax deducted at source tax at source (TDS). pay or ensure payment of, the whole or any part of the tax as required by or under ( i sub-section (2) of section 115-O ; ( ii ) the proviso to section 194B , (iii) the first proviso to sub-section (1) of section 194R ; or (iv) the proviso to sub-section (1) of section 194S ; or (v) sub-section (2) of section 194BA , Amount equal to tax not deducted or paid. 271CA Penalty levied by Joint Commissioner. For. - Failure to collect the whole or any part of the tax as required by or under the provisions of section 206C . Amount of tax, which such person failed to collect. 271D Penalty levied by Joint Commissioner. For. - Taking or accepting certain loans or deposits or specified advance in contravention of the provisions to section 269SS. Amount equal to loan or deposit or specified advance taken or accepted. 271DA Penalty levied by Joint Commissioner. For. - If a person receives any sum in contravention of the provisions of section 269ST A sum equal to the amount of such receipt. No penalty shall be imposable if such person proves that there were good and sufficient reasons for the contravention. 271E Penalty levied by Joint Commissioner. For. - Repaying any loan or deposit or specified advance specified in section 269T in contravention of its provisions. Amount equal to loan or deposit specified advance repaid. 271FA Penalty levied by AO. For. - Failure to furnish statement of Financial Transaction or Reportable Account (SFTRA) [Earlier known as Annual information Return] as required under section 285BA within the time prescribed under section 285BA. Rs.500/- per day from the date assessee was asked to file SFTRA by a notice under section 285BA(5) . However on failure to file the same after expiry of notice, penalty would be ₹1,000 per day of notice. 271FAA Penalty levied by prescribed IT Authority. Furnishing inaccurate statement of financial transaction or reportable account Rs. 50,000 or to retain out of any moneys that may be in its possession, or may come to it from every such reportable account holder, an amount equal to the sum so paid. [Amended by FA, 2023] 271FAB If any eligible investment fund which is required to furnish a statement or any information or document, as required under section 9A(5) fails to furnish such statement or information or document within the time prescribed under that sub-section. The income-tax authority prescribed under the said sub-section may direct that such fund shall pay, by way of penalty, a sum of ₹ 5,00,000. 271FB Penalty levied by prescribed IT Authority. Failure to furnish a return of fringe benefits within time prescribed u/s 115WD. Rs.100 for every day during which the failure continues. 271G Penalty levied by AO CIT(A). Failure to furnish information or documents in pursuance of a notice under section 92D(3). 2% of the value of the international transaction or specified domestic transactions for each such failure. 271GA If any Indian concern, which is required to furnish any information or document under section 285A , fails to do so, the income-tax authority, as may be prescribed under the said direction, may direct that such Indian concern shall pay, by way of penalty,- A sum equal to 2% of the value of the transaction in respect of which such failure has taken place, if such transaction had the effect or directly or indirectly transferring the right of management or control in relation to the Indian concern; A sum of ₹ 5,00,000 in any other case. 271GB Penalty for failure to furnish report or for furnishing inaccurate report u/s 286 ₹ 5,000 per day if the period of failure does not exceed 1 month ₹ 15,000 per day for which the failure continues beyond the period of 1 month. 271GC Penalty for failure to submit statement under section 285 such person shall pay, by way of penalty, a sum of (a) ₹ 1,000/- for every day for which the failure continues, if the period of failure does not exceed three months; or (b) one lakh rupees in any other case. 271H Penalty levied by AO. For, - Failure to deliver the quarterly returns of TDS/ TCS within the time prescribed Furnishing incorrect information in the quarterly returns of TDS/ TCS. Penalty minimum ₹ 10,000 and maximum up to ₹ 1,00,000. Note: Upto 31.03.2025 - No penalty for failure to deliver quarterly returns of TDS/ TCS in time, if quarterly return submitted before the expiry of one year from time prescribed and Fees under section 234E and interest under section 201(1A) paid. From 01.04.2025 - No penalty for failure to deliver quarterly returns of TDS/ TCS in time, if quarterly return submitted before the expiry of one month from time prescribed and Fees under section 234E and interest under section 201(1A) paid. 271-I Penalty levied by AO CIT(A). For, - If a person, who is required to furnish information under section 195(6), fails to furnish such information; or furnishes inaccurate information, the Assessing Officer may direct that such person shall pay, by way of penalty. A sum of ₹ 1,00,000. 271J Penalty levied by AO, JCIT(A) CIT(A). For, - Where an (a) accountant or (b) merchant banker or (c) registered valuer has furnished incorrect information in any report or certificate furnished under the provisions of this Act or rules made thereunder Penalty by way of sum of ₹ 10,000 for each such report or certificate. 271K Penalty levied by AO. For, - Failure to furnish within time specified statement etc, by: The research association, Unversity, College or Othe Institution referred to in section 35(1)(ii) or (iii) or the Company referred to in Section 35(1)(iiia) The Institution or Fund, prescribed u/s 80G(5)(ix) Minimum Penalty: ₹10,000 Maximum Penalty: ₹1,00,000. 272A(1) Refusal to answer any question put to by an income tax Authority. Refusal to sign any statement made in the course of proceedings under the Act. Failure to attend or produce books of account or documents required under a summon issued under section 131 . Rs.10,000 for each failure or default. 272A(2) Failure to give notice of discontinuance of business or profession u/s 176. Failure to furnish in due time the information required under section 133. Failure to furnish the return of income under section 139(4A ) or under section 139(4C) or to furnish within the time allowed therein. Failure to deliver in due time a copy of declaration in section 197A. Failure to furnish TDS or TCS certificate. With effect from 1-6-2015 new clause (m) in sub-section (2) of section 272A has been inserted so as to provide that if any person fails to deliver or cause to be deliver a statement within the time as may be prescribe under sub-section (2A) of section 200 or sub-section (3A) of section 206C. Rs.100 for every day during which the failure continues. However, in respect of penalty for failures in relation to declaration mentioned in section 197A , and furnishing of TDS/ TCS certificate, the penalty shall not exceed amount of TDS/ TCS. Then such person shall paid, by way of penalty ₹ 100 for every day during which failure continues. Further, proviso to sub-section (2) of section 272A is amended with effect from 1-6-2015 so as to provide that the amount of penalty for failure to file statements under sub-section (2A) of section 200 or under sub-section (3A) of section 206C , shall not exceed the amount of tax deductible or collectible, as the case may be. 272AA Failure to comply with section 133B regarding the powers of collecting certain information from the place of business or profession. Such amount as the income tax authority may direct not exceeding ₹ 1,000. 272B(1) Failure to comply with the provisions section 139A . i.e. PAN. ₹10,000 Fixed 272B(2) Failure to quote permanent account number in any document required; or Failure to intimate such number as required; or To quote or intimate a number which is false and which he either knows or believes to be false or does not believe to be true. Rs.10,000. 272BB(1) Failure to comply with section 203A i.e. failure to: Failure to obtain Tax Deduction and collection Account Number (TDCAN). Failure to quote TDCAN in the challans, certificates, returns of TDS and TCS and prescribed documents. Rs.10,000 for each failure/ default. 272BB(1A) If a person is required to quote tax deduction account number or, as the case may be, tax collection account number or tax deduction and collection account number , quotes a number which is false, and which he either knows or believes to be false or does not believe to be true. Rs.10,000 for failure/ default. 272BBB Penalty for failure to comply with the provisions of section 206CA Fixed at ₹ 10,000.