Section 271K — Failure to Deliver Statements / Furnish Certificates under Sections 35 and 80G (Donation Reporting)
Case Laws & Commentary — Income-tax Act, 1961 (as amended by the Finance Act, 2026) — bharattax.co Treatise
Status: Live. A penalty of Rs. 10,000 to Rs. 1,00,000 on a research association/university/college/institution/company referred to in section 35(1) or a fund/institution under section 80G that fails to deliver the prescribed donation statement (Form 10BD) in time, or to furnish the prescribed donation certificate (Form 10BE). Subject to reasonable cause under section 273B.
Finance Act, 2026: No amendment by the Finance Act, 2026.
Mechanism: A section 35 / section 80G donee fails to deliver the statement of donations within the prescribed time, or to furnish the donation certificate → penalty of Rs. 10,000 to Rs. 1,00,000 → unless reasonable cause is shown under section 273B.
Litigation profile: Negligible direct litigation (the donation-reporting regime is from 2021). The candour rule applies.
A. COMMENTARY
Enforcing the donation cross-verification regime
From 1 April 2021 the law shifted the burden of substantiating 80G/35 donations onto the donee institutions, which must file an annual statement of donations (Form 10BD) and issue donation certificates (Form 10BE) to donors; the donor’s deduction is now matched against this reporting. Section 271K enforces the regime with a penalty of Rs. 10,000 to Rs. 1,00,000 for default in delivering the statement or furnishing the certificate.
Reasonable cause
Being within section 273B, the penalty yields to reasonable cause — portal/technical difficulty, first-year transition, or genuine clerical error since corrected, where bona fide. The discretionary band signals that the maximum is not to be levied mechanically for a curable default.
B. STATUTORY TEXT (verbatim)
Reproduced from the Income-tax Act, 1961 as amended up to the Finance Act, 2025; Finance Act, 2026 changes are noted above.
Penalty for failure to furnish statements, etc.
271K. Without prejudice to the provisions of this Act, the Assessing Officer may direct that a sum not less
than ten thousand rupees 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 (1) of section 35, 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 sub-section (5) of section 80G, or furnish a certificate prescribed
under clause (ix) of the said sub-section.
C. AUTHORITIES
No direct authority of note exists; the candour rule applies. The governing safeguard is section 273B reasonable cause.
1. Reasonable cause / bona fide default
Principle — bona fide/technical default in donation reporting
Proposition A bona fide or technical default in filing Form 10BD or issuing Form 10BE — portal failure, transition difficulty, corrected clerical error — is reasonable cause under section 273B and defeats or mitigates the section 271K penalty.
Use The principal defence for donee institutions.
Hindustan Steel Ltd v. State of Orissa (1972) 83 ITR 26 (SC)
Holding Penalty is not to be imposed for a technical/bona fide default; discretion governs.
Use Resists a mechanical 271K levy for a curable reporting lapse.
Prepared for the bharattax.co Treatise on the Income-tax Act, 1961 (as amended by the Finance Act, 2026). Statutory text reproduced from the official Act; case-law holdings are the author’s summaries for professional use.
CHAPTER XXI — PENALTIES IMPOSABLE
Section 271K — Failure to Deliver Statements / Furnish Certificates under Sections 35 and 80G (Donation Reporting)
Case Laws & Commentary — Income-tax Act, 1961 (as amended by the Finance Act, 2026) — bharattax.co Treatise
Status: Live. A penalty of Rs. 10,000 to Rs. 1,00,000 on a research association/university/college/institution/company referred to in section 35(1) or a fund/institution under section 80G that fails to deliver the prescribed donation statement (Form 10BD) in time, or to furnish the prescribed donation certificate (Form 10BE). Subject to reasonable cause under section 273B.
Finance Act, 2026: No amendment by the Finance Act, 2026.
Mechanism: A section 35 / section 80G donee fails to deliver the statement of donations within the prescribed time, or to furnish the donation certificate → penalty of Rs. 10,000 to Rs. 1,00,000 → unless reasonable cause is shown under section 273B.
Litigation profile: Negligible direct litigation (the donation-reporting regime is from 2021). The candour rule applies.
A. COMMENTARY
Enforcing the donation cross-verification regime
From 1 April 2021 the law shifted the burden of substantiating 80G/35 donations onto the donee institutions, which must file an annual statement of donations (Form 10BD) and issue donation certificates (Form 10BE) to donors; the donor’s deduction is now matched against this reporting. Section 271K enforces the regime with a penalty of Rs. 10,000 to Rs. 1,00,000 for default in delivering the statement or furnishing the certificate.
Reasonable cause
Being within section 273B, the penalty yields to reasonable cause — portal/technical difficulty, first-year transition, or genuine clerical error since corrected, where bona fide. The discretionary band signals that the maximum is not to be levied mechanically for a curable default.
B. STATUTORY TEXT (verbatim)
Reproduced from the Income-tax Act, 1961 as amended up to the Finance Act, 2025; Finance Act, 2026 changes are noted above.
Penalty for failure to furnish statements, etc.
271K. Without prejudice to the provisions of this Act, the Assessing Officer may direct that a sum not less
than ten thousand rupees 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 (1) of section 35, 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 sub-section (5) of section 80G, or furnish a certificate prescribed
under clause (ix) of the said sub-section.
C. AUTHORITIES
No direct authority of note exists; the candour rule applies. The governing safeguard is section 273B reasonable cause.
1. Reasonable cause / bona fide default
Principle — bona fide/technical default in donation reporting
Proposition A bona fide or technical default in filing Form 10BD or issuing Form 10BE — portal failure, transition difficulty, corrected clerical error — is reasonable cause under section 273B and defeats or mitigates the section 271K penalty.
Use The principal defence for donee institutions.
Hindustan Steel Ltd v. State of Orissa (1972) 83 ITR 26 (SC)
Holding Penalty is not to be imposed for a technical/bona fide default; discretion governs.
Use Resists a mechanical 271K levy for a curable reporting lapse.
Prepared for the bharattax.co Treatise on the Income-tax Act, 1961 (as amended by the Finance Act, 2026). Statutory text reproduced from the official Act; case-law holdings are the author’s summaries for professional use.