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PENALTIES

 

Section

Nature of Default

Basis of Charge

Quantum of Penalty

221(1)

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

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Not to exceed total amount of tax in arrears

271(1)(b)

Non-compliance with notice u/s. 142(1) or sec. 115WD(2) to file return of income or return of fringe benefits or to produce documents required by assessing officer u/s. 143(2) or 115WE(2) or to produce evidence on which assessee relies or u/s. 142(2A) to get accounts audited.

 

—

Rs. 10,000 for each failure in addition to tax, if any, payable

 

271(1)(c), 271(1)(d)

Concealment of particulars of income or particulars of fringe benefits, or furnishing inaccurate particulars thereof.

Tax sought to be evaded

Minimum – Amount of tax sought to be evaded maximum – 3 times the minimum - in addition to tax, if any, payable

271A

271AA

Failure to keep, maintain or retain books or documents u/s. 44AA.
Failure to keep and maintain information and documents u/s. 92D.

—

International transaction

Rs. 25,000

2% of value of each International transaction

271AAA

Search under section 132

Undisclosed income of the specified previous year

10% of undisclosed income

271B

Failure to get accounts audited or 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

271BA

Failure to furnish a report as required u/s. 92E.

—

Rs. 1,00,000

271C

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, or second proviso to sec. 194B

Amount of tax not deducted/paid

Equal to the amount of tax failed to be deducted/paid

271CA

Failure to collect whole or part of tax as required by or under Chapter XVIIBB
(Section 206C)

Amount of tax not collected

Equal to the amount of tax the person has failed to collect

271D

Contravention of the provisions of S. 269SS; i.e., by taking or accepting any loan or deposit otherwise than by modes specified therein.

Amount of loan or deposit so taken or accepted

Equal to the amount of loan or deposit so taken or accepted

271E

Contravention of S. 269T; i.e., repayment of any loan or deposit otherwise than by modes specified therein.

Amount of deposit so repaid

Equal to the amount of loan or deposit so repaid

271F

Failure to furnish Return of Income u/s 139(1) before the end of the relevant Assessment Year.

—

Rs. 5,000

271FA


 

271FB

Failure to furnish annual information return under section 285BA(1).


Failure to furnish Return of Fringe Benefit under section 115WD(1)

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—
 

Rs.100 for every day during which the failure continues


Rs.100 for every day during which the failure continues

271G

Failure to furnish information or document u/s. 92D(3).

International transaction

2% of value of International transaction for each such default

272A(1)

Failure to answer questions, sign statements, attend summons u/s. 131(1).

—

Rs. 10,000 for each failure

272A(2)

Failure to:

  1. Comply with notice u/s. 94(6) – furnishing information regarding securities

  2. Give notice of discontinuance of business — S. 176(3)

  3. Furnish in due time returns, statements, or particulars u/s. 133, 206 or 285B

  4. Allow inspection of any register(s) — S. 134

  5. Furnish returns u/s. 139(4A) or 139 (4C)

  6. Deliver in due time a declaration mentioned in S. 197A

  7. Furnish a certificate u/s. 203.

  8. Deduct and pay tax u/s. 226(2).

  9. Furnish returns/statements/certificate u/s. 206C.

  10. Furnish a statement of particulars of perquisites and profits in lieu of salary u/s. 192(2C)

  11. Deliver in due time a declaration referred to in section 206C(1A)

  12. Deliver in due time, quarterly statement specified in section 200(3) or the proviso to section 206C(3) in respect of tax deducted or collected at source

  13. Deliver in due time, quarterly return specified in section 206A(1).

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Rs. 100 for every day during which the failure continues. However, amount of penalty for point Nos. 3, 6, 7 and 9 shall not exceed amount of tax deductible or collectible

272AA

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

—

 

Up to Rs. 1,000

272B

Failure to obtain PAN or quote PAN or intimate false PAN

—

 

Rs. 10,000

272BB

Failure to apply for Tax Deduction Account Number (TAN or quote TAN) (S. 203A)

—

 

Rs. 10,000

271BB(1A)

Failure to quote Tax Deduction/Collection Account Number or quoting of false number in challans, certificates, statements or other documents referred to in section 203A(2)

—

 

Rs. 10,000

NOTE:

  1. No penalty shall be levied u/s. 221(1) if the assessee proves that the default was for good and sufficient reasons.

  2. No penalty is imposable for any failure u/ss. 271(1)(b), 271A, 271AA, 271B, 271BA, 271BB, 271C, 271CA, 271D, 271E, 271F, 271FA, 271FB, 271G, 272A(1)(c) or (d), 272A(2), 272AA(1), 272B, 272BB(1), 272BBB(1), 272BB(1A)(b), 273(1)(b), 273(2)(b) or (c) if the person or assessee proves that there was a reasonable cause for such failure (S. 273B).

  3. Penalty u/s. 271 can also be levied by Commissioner.

  4. Penalty u/s. 271(1) can be levied even if no tax is payable on the income assessed.

  5. No penalty shall be imposed u/s 271AAA, if the assessee admits undisclosed income, substantiates the manner of deriving such undisclosed income and pays tax together with interest in respect of the undisclosed income.

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