Penalties under Income Tax Act


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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Amount of tax in arrears

271(1)(b)

Non-compliance with notice u/s. 142(1) to file returns or to produce documents required by assessing officer or u/s. 143(2) to produce evidence on which assessee relies or u/s. 142(2A) to get accounts audited.

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Rs. 10,000

271(1)(c)

Concealment of the particulars of income, or furnishing inaccurate particulars thereof.

Tax sought to be evaded

100 % to 300 % of tax sought to be evaded

271A

Failure to maintain books or documents u/s. 44AA.

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Rs. 25,000

271AA

Failure to keep and maintain information and documents u/s. 92D.

International transaction

2% of International transaction

271B

Failure to get accounts audited and 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.

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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.

Tax failed to be deducted

Equal to the amount failed to be deducted

271D

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

Amount of deposit so repaid

Equal to the amount of deposit so repaid

271F

Failure to furnish Return of Income under sub-section (1) of S. 139 before the end of the relevant Assessment Year.

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Rs. 5,000

 Failure to furnish Return of Income under proviso to sub-section (1) of S. 139 by the due date.

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Rs. 5,000

 

271G

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

International transaction

2 % of such default.

272A(1)

Failure to answer questions, sign statements, attend summons u/s. 131(1), apply for permanent account number u/s. 139A.

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Rs. 10,000

272A(2)

Failure to:

 

Rs. 100 for every day during which the failure continues.

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

Give notice of discontinuance of business - S. 176(3)

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

Allow inspection of any register(s) - S. 134

Furnish returns u/s. 139(4A)

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

Furnish a certificate u/s. 203.

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

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

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

272AA(1)

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

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Rs. 1,000

272B

Failure to apply for Permanent Account Number (PAN)

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Rs. 10,000

272BB(1)

Failure to apply for Tax Deduction Account No. (TAN) (S. 203A)

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Rs. 10,000

272BBB

Failure to apply for Tax Collection Account No. (TCN)

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Rs. 10,000