Offences and Penalties under Income Tax

Relevant Section

Default Name

Penalty imposable

(1)

(2)

(3)

140A(3)

Failure  in paying  partly or wholly 

Any such amount as may be imposed by the Assessing Officer but not more than the tax in arrears

(a) self-assessment tax

(b) Fees and interest

(c) both Fees and Interest

section 140A(1)

158BFA(2)

While determining  block period 's undisclosed income 

Minimum : 100 % tax imposed on the income that are not disclosed

Maximum : 300 % tax imposed on the income that are not disclosed

221(1)

Tax Default 

Any such amount as may be imposed by the Assessing Officer but not more than the tax in arrears

234E

When the taxpayer fails to file statement under section 200(3) with regard to section 206C(3)

Rs. 200 for every failure continued but not more than the deducted or collected tax

234F

Default while furnishing returns on income as provided under section 139(1)AB

Rs. 5,000  in case the return is filed after the specified due date under section 139(1). However , if the total income of the individual is not more thanRs. 5 lakhs then late filing charges of Rs. 1,000 will  be applicable

234G

Fees deposited as a result of default in statement submission under section 35 as prescribed

Rs. 200 per day

234H

Fees deposited in case of default in intimation of Aadhaar Number

Maximum of Rs. 1,000

270A(1)

Mis-reporting or under-reporting of income

 A amount equal to 50% of the tax payable on the under reported income.

In case the under report is due to misreporting by a person then the penalty will be 200% equal to the sum payable on under reported income

271(1)(b)

In case, a person fails to comply with the notice under section 115WD(2)/115WE(2)/ 142(1) or section 143(2) 142(2A)

Rs. 10,000  fixed penalty for each failure.

However, the aforesaid penalty will be imposed related to assessment for assessment years starting on or after 1st April 2017

271(4)

Distribution of profits by registered firms as mentioned in the partnership deed and due to the same partner has filed return lower than the real income

Not more than 150% of difference between the income of the partner and tax assessed and additional tax payable and tax on the income that are returned

However, the aforesaid penalty will be imposed related to assessment for assessment years starting on or after 1st April 2017

271A

Failing to maintain, keep or retains of documents as needed under section 44AA

Rs. 25,000

271AA(1)

Failing to maintain and  keep information required under section 92D(1) or 92D(2)

2%  of each  value in respect of specified domestic transaction as well as international transaction provided

 Failing to report of any such transaction

Maintenance or  providing incorrect document or information 

271AA(2)

Failing to furnish documents and information  as prescribed under Section 92D(4)

Rs. 5,00,000/-

271AAA

In case there is initiation of search conducted prior to 1 July 2012 and undisclosed income found

10% of  income that are not disclosed income

271AAB(1)

In case there is initiation of search conducted prior to 1 July 2012 and undisclosed income found

(a) 10% of income that are not disclosed as specified in the previous year if admitted by assessee.

Substantiates in the manner that was derived and on or prior to the specified payment of tax. Although the interest whereof furnished income tax return as specified in the previous year with declaration of incomes that are not disclosed earlier

(b) 10% of income that are not disclosed as specified in the previous year if admitted by assessee.

Substantiates in the manner that was derived and on or prior to the specified payment of tax. Although the interest whereof furnished income tax return as specified in the previous year with declaration of incomes that are not disclosed earlier

(c) 60% of income that are not disclosed in the specified previous year  in case  not covered by above point of (a) and (b)

271AAB(1A)

In case there is initiation of search conducted prior to 15 December 2016 and undisclosed income found 

(a) 30% of of income that are not disclosed as specified in the previous year if admitted by assessee.

Substantiates in the manner that was derived and on or prior to the specified payment of tax. Although the interest whereof furnished income tax return as specified in the previous year with declaration of incomes that are not disclosed earlier

(b) 60% of income that are not disclosed as specified in previous year

271AAC

Determination of Income by Assessing Officer including the income as provided under section 68, 69, 69A, 69B,  69C or  69D for any previous year. 

In case the incomes are not included by the assessee in ITR as per the provision of section 115BBE that are not paid

10% of tax payable under section 115BBE

271AAD

Penalty, in case of any proceeding under the Income Tax Act, it is revealed that the books of accounts are maintained by assesse is of;

1. Fake or false entry
2. Omission of any entry while computing tax liability of a person with regard to evasion of tax.

100% of any omitted and fake entry

271B

Fails to get the books of account audited under section 44AB

1/2 % of total sales,  gross receipt or annual turnover or Rs. 1,50,000, which-ever is less

271BA

Fails to provide a report from an accountant as prescribed under section 92E

Rs. 1,00,000

271BB

Fails to subscribe the amount in respect of the units issued under section 88A(1)

20 % of such amount

271C

Fails to deduct TDS wholly or partly under sections 192 to 196D  and if fails to pay wholly or partly tax under section 115-O(2) or second provision to section 194B

Sum equal to tax not paid or deducted

271CA

Fails collect TCS under Chapter XVII-BB

Sum equal to tax not collected

271D

Accepting loan or deposit or sum specified in contravention of the provision under section 269SS.

“Specified sum” refers to sum of money received whether it may be received in advance related to transfer of a immovable property, it does not matter if the transfer actually made or not

Sum equal to deposit or loan or sum specified or accepted

271DA

Receipt of a sum  Rs. 2 lakh or more from a person in single day under section 269S

Sum equal to such receipt

271DB

Fails to provide facility for acceptance of payment by way of electronic modes of payment as prescribed under section 269SU

Rs. 5,000 rupees for each day of default

271E

Repayment of loan or deposit or sum specified in contravention of the provision under section 269T.

“Specified Advance” refers to sum of money received whether it may be received in advance related to transfer of a immovable property, it does not matter if the transfer actually made or not

Sum equal to deposit or loan or sum specified or accepted

271FA

Fails to furnish information annually as prescribed under section 285BA(1) 

Rs. 500 per day of default

271FAA

Furnishing of incorrect or inaccurate information in the financial statement or reportable account

Rs. 50,000

Failure to furnish information in the annual return within specified in notice under section 285BA(5)

Rs. 1,000 per day of default

271FAB

Section 9A deals with the management of funds carried out by a eligible offshore fund investment by an eligible fund manager working on behalf of aforesaid fund will not constitute business transaction in India provided certain conditions gets fulfilled.

 The provision needs that the investment fund will be furnished within a period of 90 days at the end of a financial year in respect of its business activity

 In the prescribed format containing the details related to the fulfillment of the specified criteria and any documents or information as prescribed. Penalty will be imposed in case of failure of investment fund comply with the requirement.

Rs. 5,00,000

271G

Fails to furnish any document or information as needed by section 92D(3)

2% of the international transaction value

And certain domestic transaction for each failure