Penalty for furnishing inaccurate Statement of Financial Transaction or Reportable Account - Section 271FAA - Income Tax - Ready Reckoner - Income Tax

Penalty for furnishing inaccurate Statement of Financial Transaction or Reportable Account - Section 271FAA The following section shall be inserted with effect from the 1st day of April, 2015 From 01.10.2024 - If a person referred to in section 285BA(1) , who is required to furnish a statement under that section, (a) provides inaccurate information in the statement or fails to furnish correct information within the period specified under section 285BA(6); or (b) fails to comply with the due diligence requirement prescribed under section 285BA(7), then, the prescribed income-tax authority referred to in section 285BA(1) thereof may direct that such person shall pay, by way of penalty, a sum of 50,000/-. [ Section 271FAA(1) ] Upto 30.09.2024 - If a person referred to in Section 285BA(1) , who is required to furnish a statement under that section, provides inaccurate information in the statement, and where- The inaccuracy is due to a failure to comply with the due diligence requirement prescribed under Section 285BA(7) or is deliberate on the part of that person or The person knows of the inaccuracy at the time of furnishing the statement of financial transaction or reportable account, but does not inform the prescribed income-tax authority or such other authority or agency or The person discovers the inaccuracy after the statement of financial transaction or reportable account is furnished and fails to inform and furnish correct information within the time specified under Section 285BA(6) Then, the prescribed income-tax authority may direct that such person shall pay, by way of penalty, a sum of 50,000/- . [ Section 271FAA(1) ] w.e.f. 01.04.2023 Where in the case of a person, a prescribed reporting financial institution section 285BA(1)(k) , who is required to furnish a statement under that section provides inaccurate information in the statement and the inaccuracy in such statement is due to false or inaccurate information furnished by the holder or holders of the relevant reportable account or accounts, the prescribed income-tax authority under section 285BA(1), shall direct that the reporting financial institution shall, in addition to the penalty under section 271FAA(1) , if any, pay a sum of 5,000/- for every inaccurate reportable account and the reporting financial institution shall be entitled to recover the sum so paid on behalf of such reportable account holder , 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. [ Section 271FAA(2) ]