Penalty for Failure re Crypto-asset Statement

Section 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].

PRACTICAL POINTS

• Crypto exchanges and Indian-resident reporting entities are required to file the Statement of Reportable Account or VDA transactions; late filing attracts INR 200 per day, and inaccurate information or a due-diligence failure INR 50,000 (s. 446(1), (2)).

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).