Penalty for Failure to Keep Books and Other Default

Section 441 — - PENALTY FOR FAILURE TO KEEP BOOKS AND OTHER DEFAULT

Section 441 of the Income-tax Act, 2025 corresponds to s. 271A 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 as prescribed.

PRACTITIONER PLANNING NOTES

• Documentation defence: keep books for 8 years; receipt-side and expenditure-side evidence.

CROSS-REFERENCES

• s. 439 (under-reporting or misreporting -- master penalty).
• s. 440 (immunity application).
• s. 469 or 470 (waiver or reasonable-cause).
• s. 471 or 472 (procedure or limitation).