Various penalties under income tax act

There are different penalties for different types of default. I have summarized all the penalties under the income tax act in following table.

Sr. No. When
applicable
Section Amount of Penalty
1. Penalty for failure to pay whole or any part of Income tax or interest or both in accordance with the provisions of Section 140A(1) 140A(3)

Minimum Penalty- Such amount as the Assessing Officer may impose [Section 221(1)]

Maximum Penalty – Tax in arrears

2. Penalty for failure furnish in time return of total income including undisclosed income in respect of search initiated under section 132/132A after December 31,1997 158BFA

Minimum Penalty – amount of tax leviable

Maximum Penalty – 300 % of the amount of tax leviable.

 

3. Penalty for default in making payment of tax within prescribe time. 221(1)

Minimum Penalty- Such amount as the Assessing Officer may impose

Maximum Penalty –   Tax
in arrears

4. Fess for default in furnishing TDS/TCS returns. (Applicable from 1st July 2012) 234E

Minimum Penalty Rs. 200 for every day during which failure continues

Maximum Penalty – not exceeding tax deductible/collectible.

5. Penalty for failure to comply with a notice under section 1115WD(2), 115WE(2), 143(2) or failure to comply with a direction under section 142(2A) 271(1)(b) Minimum Penalty- Rs. 10,000 for each failure (Rs.1000 up to May 31,2001)                 Maximum Penalty –  Rs. 10,000 for each failure (Rs.25000 up to
May 31,2001)
6. Penalty for failure to keep, maintain, or retain books of account, documents, etc., as required under
section 44AA
271A Minimum Penalty- Rs. 25,000(Rs.2000 up to May 31,2001)                 Maximum Penalty –  Rs. 25,000 (Rs. 1,00,000 up to May 31,2001)
7. Penalty for to keep and maintain information and document in respect of International transaction or (w.e.f.
July 1,2012) failure to report international transaction or furnishing of incorrect information(w.e.f. April 1, 2013, these provision are also applicable in the
case of specified domestic transaction.)
271AA 2% of the value of each International Transaction
8. Penalty for failure to get accounts audited or furnishing a report of audit as required under section
44AB
271B One-half per cent of total sales, turnover or gross receipts, etc., or Rs. 1,50,000, (Rs.1,00,000
up to 31.03.2011) whichever is less.
9. Penalty for failure to furnish a report from an accountant as required by section 92E 271BA Rs. 1,00,000
10. Penalty for failure to furnish return as required by section 139(1) or by its proviso before the end of the
relevant assessment year
271F Rs. 5,000 (Rs. 1000 up to 31.03.2001)
11. Penalty for failure to furnish statement of financial transactions or reportable account as required under
section 285BA(1)
271FA Rs. 100 per day of Default
12. Penalty for failure to furnish statement of financial transactions or reportable account within the period
specified in notice issued under Section 285BA(5)
271FA Rs. 500 per day of default
13. Penalty for failure to  deliver/cause to be delivered a statement within the time prescribed in section 200(3) or the proviso to section 206C(3), or furnishes incorrect information in the statement 271H Rs. 10,000 but may extend to Rs.1,00,000
14.

Penalty for refusal or failure to :

a) answer questions

b) sign statement

c) attend to give evidence or produce books of account, etc., incompliance with summons under section 131(1)

 

272A(1) Rs.
10,000 for each failure/default
15.

Penalty for failure to:

a) furnish requisite information in respect of securities as required under section 94(6);

b) give notice of discontinuance of business or profession as required under section 176(3);

c) furnish in due time returns, statements or certificates, deliver declaration, allow inspection, etc., under sections 133, 134, 139(4A),139(4C), 192(2C),
197A, 203, 206,206C, 206C(1A) and 285B;

d) deduct and pay tax under section226(2)

e) file a copy of the prescribed statement within the time specified in section
200(3) or the proviso to section 206C(3) (up to 1-7-2012)

f) file the prescribed statement within the time specified in section206A(1)

272A(2)

Rs. 10,000 for each failure/default

(Subject to certain conditions)

16. Penalty for failure to comply with section 133B 272AA Not exceeding Rs. 1,000
17. Penalty for failure to comply with provisions of section 139A/139A(5)(c)/(5A)/(5C) 272B Rs. 10,000
18. Penalty for failure to comply with section 203A 272BB(1) Rs. 10,000 for each failure/default
19. Penalty for quoting false tax deduction account number/tax collection account
number/tax deduction and collection account number in challans/certificates/statements/documents referred to in section 203A(2)
272BB(1A) Rs. 10,000
20. Income-tax officer can impose penalty only with the prior approval of Joint Commissioner 274 If amount of penalty exceeds Rs. 10,000
21. Assistant Commissioner or Deputy Commissioner can impose penalty only with the prior approval of Joint Commissioner 274 If amount of penalty exceeds Rs. 20,000
22. Commissioner or Principal Commissioner can reduce or waive penalty only with the previous approval of Principal Chief Commissioner or Chief Commissioner or Principal Director-General or Director-General 273A If amount of penalty exceeds Rs. 1,00,000
23. Failure to deduct whole or any part of tax as required under section 192 to 196 C 271C Amount of tax which such person has failed to deduct or pay.
24. Penalty for failure to collect tax at source (From April 2007) 271CA Amount of tax which such person has failed to collect.
25. Taking or accepting any loan or deposit in contravention of the provisions of
section 269SS
271D Amount of loan / deposit so taken or accepted
26. Repaying any deposit or loan or deposit referred to in section 269T otherwise than in accordance with the provisions of section 269T 271E Amount of deposit so repaid
27. Failure to furnish accurate statement of financial transaction or reportable account under section 285BA(1)(k) , Applicable from 01/04/2015 271FAA Rs.50000
28. Failure to furnish information or document pertaining to international transactions or specified domestic transactions under section 92D 271G 2% of the value of transaction
29. Failure to answer any question put to a person by any income tax authority 272A(1)(a) Rs.10000 for each default
30. Failure to sign any statement made by person in the course of income tax proceeding. 272A(1)(a) Rs.10000 for each default
31. Failure to comply with summons issued under section 131(1) to attend office to give evidences and to produce the books of accounts or other documents 272A(1)(c) Rs.10000 for each default

 

Leave a Reply

Your email address will not be published. Required fields are marked *