Penalty for Failure re Crypto-asset Statement

Section 446 — - PENALTY FOR FAILURE RE CRYPTO-ASSET STATEMENT

Section 446 of the Income-tax Act, 2025 corresponds to s. 271FAA (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].

PRACTITIONER PLANNING NOTES

• Crypto exchanges and Indian-resident reporting entities: file Statement of Reportable Account or VDA transactions; non-compliance attracts INR 50,000 + INR 200 per day.

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).