Penalties on trust & Institutions - Income Tax - Ready Reckoner - Income Tax

Penalties on trust Institutions 1. Penalty for late filling o return A. Fee for default in furnishing return of income [ Section 234F ] where a person required to furnish a return of income under section 139, fails to do so within the time prescribed u/s 139(1). a. If total income does not exceeds 5,00,000/- he shall pay, by way of a fee, of Rs. 1,000/-: b. if the total income exceeds 5,00,000/- , he shall pay, by way of a fee of Rs. 5,000/- B. Penalty for late filling As per section 272A(2)(e) If any person fails to furnish the return of income which he is required to furnish under section 139(4A)/ (4C) or to furnish it within the time allowed. he shall pay, by way of penalty, a sum of 500/- rupees for every day during which the failure continues. 2. Provide Benefits to related persons - Section 271AAE [ Inserted w.e.f. 01-04-2023 ] Without prejudice to any other provision of this Chapter, if during any proceedings under this Act, it is found that a person, being any fund or institution referred to in Section 10(23)(iv) or (v) or (vi) or (via), or any trust or institution referred to in section 11 has violated the provisions of the twenty-first proviso to clause (23C) of section 10, or section 13(1)(c), as the case may be, the Assessing Officer may direct that such person shall pay by way of penalty- (a) a sum equal to the aggregate amount of income applied, directly or indirectly, by such person, for the benefit of any person referred to in section 13(3), where the violation is noticed for the first time during any previous year ; and (b) a sum equal to 200% of the aggregate amount of income of such person applied, directly or indirectly, by that person, for the benefit of any person referred to in section 13(3), where violation is noticed again in any subsequent previous year . Note - It may be noted that Section 271AAE seeks to operate without prejudice to any other provision of Chapter XXI. Thus, if any penalty is leviable under any of the other provisions of this chapter, in addition to such penalty, that penalty would also be applicable. 3. Default in Furnishing statement or certificate of donation as referred under section 35 or Section 80G liable for penalty under section 271K The penalty shall not be less than ₹ 10,000/- but which may extend to one lakh rupees shall be paid by way of penalty by- (i) the research association, university, college or other institution referred to in clause (ii) or clause (iii) or the company referred to in clause (iia) of sub-section 35(1), if it fails to deliver or cause to be delivered a statement within the time prescribed under clause (i), or furnish a certificate prescribed under clause (ii) of sub-section (1A) of that section; or (ii) the institution or fund, if it fails to deliver or cause to be delivered a statement within the time prescribed under clause (viii) of Section 80G(5), or furnish a certificate prescribed under clause (ix) of the said section 80G(5).