Penalty for Refusal to Answer or Sign Statement

Section 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.

PRACTITIONER PLANNING NOTES

• Best practice: cooperate; refusal triggers adverse inference + penalty + prosecution risk.

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).