When penalty under Section 271FAA may be imposed?

Ans. Penalty under Section 271FAA may be imposed if any person provides inaccurate information in the Statement of Financial Transaction or Reportable Account under Section 285BA. The penalty may be levied if:

a. ​The inaccuracy is due to a failure to comply with the due diligence or is deliberate on the part of that person;

b. The inaccuracy is due to false or inaccurate information submitted by the holder of reportable accounts;

c. The person knows the inaccuracy at the time of furnishing the statement but does not inform the tax authorities; or

d. The person discovers the inaccuracy after furnishing the statement but he fails to inform and furnish correct information within 10 days.​