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 in respect of certain income (omitted)
Section 443 was omitted by the Finance Act, 2026, w.e.f. 1-4-2026. Before its omission it corresponded to s. 271AAC of the Income-tax Act, 1961. STATUTORY ARCHITECTURE Section 443 has been omitted by the Finance Act, 2026, w.e.f.…
- 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
No corresponding penalty in the Income-tax Act, 1961. Section 446 was substituted by the Finance Act, 2026, w.e.f. 1-4-2026; the crypto-asset statement it enforces (s. 509) corresponds to s. 285BAA of the 1961 Act. STATUTORY ARCHITECTURE Penalty for failure to furnish statement re VDA or crypto-asset transactions u/s 509(1) [285BA equivalent].…
- 447
Penalty for failure to furnish report under section 172 (omitted)
Section 447 was omitted by the Finance Act, 2026, w.e.f. 1-4-2026. Before its omission it corresponded to s. 271BA of the Income-tax Act, 1961. STATUTORY ARCHITECTURE Section 447 has been omitted by the Finance Act, 2026, w.e.f. 1-4-2026.…
- 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. 271D 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. 271DA 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 for failure to submit statement under section 505
Section 460 of the Income-tax Act, 2025 corresponds to s. 271GC of the Income-tax Act, 1961. STATUTORY ARCHITECTURE Section 460 is the penalty provision for failure to furnish the statement required by s. 505. Section 505 requires every…
- 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 for failure to furnish information or furnishing inaccurate information under section 397(3)(d)
Section 462 of the Income-tax Act, 2025 corresponds to s. 271I of the Income-tax Act, 1961. STATUTORY ARCHITECTURE Section 462 is a penalty provision tied to the information that a person is required to furnish under s. 397(3)(d). It…
- 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 furnish statements, etc.
Section 464 of the Income-tax Act, 2025 corresponds to s. 271K of the Income-tax Act, 1961. STATUTORY ARCHITECTURE Section 464 empowers the Assessing Officer to impose a penalty on two classes of entities for specified reporting failures:…
- 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. 272AA 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. 272B 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. 272BB 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…