Penalty re Acceptance of Loan or Deposit (s. 185)

Section 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 [s. 269SS].

PRACTITIONER PLANNING NOTES

• Reasonable cause defence: family transactions (Asstt. CIT v. Vinman Finance and Leasing Ltd. (2008) 306 ITR 377), agricultural sales -- documented well.
• Aggregate test: any single transaction with same person 20K or more attracts penalty.

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).