ITA 2025 · Chapter XXI
Chapter XXI
Sections in this chapter
- 439
Penalty for Under-reporting and Misreporting of Income
Section 439 of the Income-tax Act, 2025 corresponds to s. 270 A (FA 2016 from 1-4-2017) of the Income-tax Act, 1961. STATUTORY ARCHITECTURE Section 439 is the bedrock penalty provision of the 2025 Act -- it replaces (under the 1961…
- 440
Immunity from Imposition of Penalty
Section 440 of the Income-tax Act, 2025 corresponds to s. 270 AA (FA 2016) of the Income-tax Act, 1961. STATUTORY ARCHITECTURE Assessee may apply to AO for waiver of penalty u/s 439 [270A] AND immunity from prosecution u/s 472…
- 441
Penalty for Failure to Keep Books and Other Default
Section 441 of the Income-tax Act, 2025 corresponds to s. 271 A of the Income-tax Act, 1961. STATUTORY ARCHITECTURE Flat penalty of INR 25,000 for failure to maintain books or documents required u/s 44AA [ s. 62 of 2025] or to retain them…
- 442
Penalty re Transfer Pricing Documentation
Section 442 of the Income-tax Act, 2025 corresponds to s. 271 AA - s. 271 G of the Income-tax Act, 1961. STATUTORY ARCHITECTURE 2% of value of each international transaction or specified domestic transaction in respect of which the…
- 443
Penalty for Refusal to Answer or Sign Statement
Section 443 of the Income-tax Act, 2025 corresponds to s. 271(1)(b) (FA 1987) of the Income-tax Act, 1961. STATUTORY ARCHITECTURE Penalty for refusal to answer questions or sign statement put by AO during proceedings under the Act.…
- 444
Penalty for False Entry in Books
Section 444 of the Income-tax Act, 2025 corresponds to s. 271 AAD (FA 2020) of the Income-tax Act, 1961. STATUTORY ARCHITECTURE Penalty equal to aggregate amount of false entry or omitted entry. Targets fake invoices, sham transactions,…
- 445
Penalty re Charitable Trust Specified Income
Section 445 of the Income-tax Act, 2025 corresponds to s. 271 AAE of the Income-tax Act, 1961. STATUTORY ARCHITECTURE Penalty on registered NPO for any specified income chargeable under s. 211 [ s. 13 -12-115BBI of 1961] -- equal to…
- 446
Penalty for Failure re Crypto-asset Statement
Section 446 of the Income-tax Act, 2025 corresponds to s. 271 FAA (FA 2024) of the Income-tax Act, 1961. STATUTORY ARCHITECTURE Penalty for failure to furnish statement re VDA or crypto-asset transactions u/s 509(1) [285BA equivalent].…
- 447
Penalty re Failure to Get Accounts Audited
Section 447 of the Income-tax Act, 2025 corresponds to s. 271 B of the Income-tax Act, 1961. STATUTORY ARCHITECTURE 0.5% of total sales or turnover or gross receipts subject to maximum INR 1,50,000. Non-compliance with s. 63 [44AB tax…
- 448
Penalty re Failure to Deduct Tax at Source
Section 448 of the Income-tax Act, 2025 corresponds to s. 271 C of the Income-tax Act, 1961. STATUTORY ARCHITECTURE Penalty equal to tax not deducted -- in addition to s. 398 (consequences of failure) interest. Discretionary -- AO must…
- 449
Penalty re Failure to Collect Tax (TCS)
Section 449 of the Income-tax Act, 2025 corresponds to s. 271 CA of the Income-tax Act, 1961. STATUTORY ARCHITECTURE Penalty equal to TCS not collected. Mirror of s. 448 [271C] for collectors. PRACTITIONER PLANNING NOTES Document the…
- 450
Penalty re Acceptance of Loan or Deposit (s. 185)
Section 450 of the Income-tax Act, 2025 corresponds to s. 271 D of the Income-tax Act, 1961. STATUTORY ARCHITECTURE Penalty equal to amount of loan, deposit or specified sum accepted in cash exceeding INR 20,000 in contravention of s. 185…
- 451
Penalty re Receipt in Cash above INR 2 lakh (s. 186)
Section 451 of the Income-tax Act, 2025 corresponds to s. 271 DA of the Income-tax Act, 1961. STATUTORY ARCHITECTURE Penalty equal to amount received in cash by single person on single day in aggregate exceeding INR 2 lakh in…
- 452
Penalty re Failure to Provide Digital Acceptance Facility
Section 452 of the Income-tax Act, 2025 corresponds to s. 271 DB of the Income-tax Act, 1961. STATUTORY ARCHITECTURE Penalty INR 5,000 per day during period of failure where assessee turnover above INR 50 crore fails to provide UPI, RuPay…
- 453
Penalty re Repayment of Loan or Deposit Otherwise than Banking Channel
Section 453 of the Income-tax Act, 2025 corresponds to s. 271 E of the Income-tax Act, 1961. STATUTORY ARCHITECTURE Penalty equal to amount of loan, deposit or specified advance repaid in cash exceeding INR 20,000 in contravention of s.…
- 454
Penalty re Failure to Furnish SFT or Reportable Account
Section 454 of the Income-tax Act, 2025 corresponds to s. 271 FA of the Income-tax Act, 1961. STATUTORY ARCHITECTURE INR 500 per day; INR 1,000 per day during continuance after notice. Specified Financial Transactions u/s 508 [285BA]…
- 455
Penalty re Inaccuracy in SFT
Section 455 of the Income-tax Act, 2025 corresponds to s. 271 FAA of the Income-tax Act, 1961. STATUTORY ARCHITECTURE INR 50,000 for inaccurate information in SFT or reportable account statement. PRACTITIONER PLANNING NOTES Cross-verify…
- 456
Penalty re Eligible Investment Fund Reporting
Section 456 of the Income-tax Act, 2025 corresponds to s. 271 FAB of the Income-tax Act, 1961. STATUTORY ARCHITECTURE Penalty for failure of EIF ( s. 9 A of 1961) to file statement or information per Schedule I. PRACTITIONER PLANNING…
- 457
Penalty re Failure to Furnish TP Information
Section 457 of the Income-tax Act, 2025 corresponds to s. 271 G of the Income-tax Act, 1961. STATUTORY ARCHITECTURE 2% of international transaction value -- failure to furnish TP information or document under s. 506(1) [ s. 92 D] within…
- 458
Penalty re Indian Concern Failure to Furnish Information re Foreign Co
Section 458 of the Income-tax Act, 2025 corresponds to s. 271 GA of the Income-tax Act, 1961. STATUTORY ARCHITECTURE INR 5,00,000 for failure of Indian concern (where indirect transfer of Indian asset triggered s. 9 deeming) to provide…
- 459
Penalty re CbCR Filing Failure
Section 459 of the Income-tax Act, 2025 corresponds to s. 271 GB of the Income-tax Act, 1961. STATUTORY ARCHITECTURE Tiered: INR 5,000 per day for first month, INR 15,000 per day thereafter, capped at INR 5 lakh; INR 50,000 for…
- 460
Penalty re Failure to Furnish Statement re Crypto or VDA
Section 460 of the Income-tax Act, 2025 corresponds to s. 271 FAB of the Income-tax Act, 1961. STATUTORY ARCHITECTURE INR 200 per day on crypto-exchange or VDA reporting entity for failure to file statement u/s 505 [ s. 285 BAA].…
- 461
Penalty re Failure to Deliver TDS Quarterly Statement
Section 461 of the Income-tax Act, 2025 corresponds to s. 271 H of the Income-tax Act, 1961. STATUTORY ARCHITECTURE Penalty INR 10,000 to INR 1,00,000 for failure to deliver or inaccuracy in TDS or TCS quarterly statement under s.…
- 462
Penalty re Inaccurate Information in TDS Statement
Section 462 of the Income-tax Act, 2025 corresponds to s. 271 J of the Income-tax Act, 1961. STATUTORY ARCHITECTURE INR 10,000 per default for inaccurate information by accountant, merchant banker or registered valuer in report or…
- 463
Penalty on Professionals (Accountants, Valuers, Merchant Bankers)
Section 463 of the Income-tax Act, 2025 corresponds to s. 271 J (FA 2017) of the Income-tax Act, 1961. STATUTORY ARCHITECTURE INR 10,000 for any incorrect information in any report or certificate by accountant, merchant banker or…
- 464
Penalty for Failure to Comply with Notices
Section 464 of the Income-tax Act, 2025 corresponds to s. 271(1)(b) of the Income-tax Act, 1961. STATUTORY ARCHITECTURE INR 10,000 to INR 1,00,000 -- range; for failure to comply with notice u/s 270, 271 or 272 [142 or 143]. PRACTITIONER…
- 465
Penalty for Default in Multiple Specified Defaults
Section 465 of the Income-tax Act, 2025 corresponds to s. 272 A of the Income-tax Act, 1961. STATUTORY ARCHITECTURE INR 10,000 each for various specified defaults -- failure to answer questions, sign statements, attend, etc. PRACTITIONER…
- 466
Penalty re Failure to Comply with s. 254 Survey Order
Section 466 of the Income-tax Act, 2025 corresponds to s. 272 AA of the Income-tax Act, 1961. STATUTORY ARCHITECTURE Penalty up to INR 1,000 per day during continuance of failure. PRACTITIONER PLANNING NOTES Survey-team compliance;…
- 467
Penalty re Failure to Comply with s. 262 PAN Provisions
Section 467 of the Income-tax Act, 2025 corresponds to s. 272 B of the Income-tax Act, 1961. STATUTORY ARCHITECTURE INR 10,000 for failure to comply with PAN provisions -- non-application, non-quoting, false PAN, etc. PRACTITIONER…
- 468
Penalty re Failure to Comply with s. 397 TAN-26AS
Section 468 of the Income-tax Act, 2025 corresponds to s. 272 BB of the Income-tax Act, 1961. STATUTORY ARCHITECTURE INR 10,000 for failure re TAN, Form 26AS or quarterly statements. PRACTITIONER PLANNING NOTES TAN application + quoting…
- 469
Power of PCIT or CIT to Reduce or Waive Penalty
Section 469 of the Income-tax Act, 2025 corresponds to s. 273 A of the Income-tax Act, 1961. STATUTORY ARCHITECTURE PCIT or CIT may, on his own motion or on application, reduce or waive penalty u/s 439 [270A], 444 [271AAD] or 471 [274] --…
- 470
Reasonable Cause Defence
Section 470 of the Income-tax Act, 2025 corresponds to s. 273 B of the Income-tax Act, 1961. STATUTORY ARCHITECTURE Notwithstanding ss. 441, 442, 446, 448-468, no penalty if assessee proves reasonable cause for the failure. Statutory…
- 471
Procedure for Imposition of Penalty
Section 471 of the Income-tax Act, 2025 corresponds to s. 274 of the Income-tax Act, 1961. STATUTORY ARCHITECTURE Mandatory hearing before any penalty order. AO must record reasons and serve show-cause notice specifying the penalty…
- 472
Bar of Limitation for Imposing Penalty
Section 472 of the Income-tax Act, 2025 corresponds to s. 275 of the Income-tax Act, 1961. STATUTORY ARCHITECTURE Time-limits: (a) where penalty initiated AND assessment is appealed -- 6 months from end of month in which appellate order…