Section 454 — Penalty re Failure to Furnish SFT or Reportable Account | ITA 2025

Section 454 of the Income-tax Act, 2025 corresponds to s. 271 FA of the Income-tax Act, 1961. STATUTORY ARCHITECTURE INR 500 per day; INR 1,000 per day during continuance after notice. Specified Financial Transactions u/s 508 [285BA]…

Section 454 — - PENALTY RE FAILURE TO FURNISH SFT OR REPORTABLE ACCOUNT

Section 454 of the Income-tax Act, 2025 corresponds to s. 271FA of the Income-tax Act, 1961.

Statutory text — Income-tax Act, 2025

Where any person, who is required to furnish a statement of financial trans- action or reportable account under section 508(1), fails to furnish such statement or reportable account within the period specified in the notice issued under section

12. Substituted by the Finance Act, 2026, w.e.f. 1-4-2026. Prior to its substitution, section 454 read as under: “454. Penalty for failure to furnish statement of financial transaction or reportable account.—

(1) If a person who is required to furnish a statement of financial transaction or reportable account under section 508(1), fails to furnish such statement within the time prescribed under sub-section (2) thereof, the income-tax authority prescribed under the said sub-section (1) may impose on him, a penalty of ` 500 for every day during which such failure continues.

(2) If the person referred to in sub-section (1), fails to furnish the statement within the period specified in the notice issued under section 508(7), he shall pay penalty of ` 1000 for every day during which the failure continues, beginning from the day immediately after the time specified in such notice for furnishing the statement expires.” 508(7), the income-tax authority prescribed under section 508(1) may impose on him, a penalty of ` 1000 for every day for which such failure continues, beginning from the day immediately after the period specified in such notice for furnishing such statement or reportable account expires and such penalty shall not exceed ` 100000.] Penalty for furnishing inaccurate statement of financial transaction or reportable account.

STATUTORY ARCHITECTURE

INR 500 per day; INR 1,000 per day during continuance after notice. Specified Financial Transactions u/s 508 [285BA] reporting.

PRACTITIONER PLANNING NOTES

Filing entities: banks, MFs, registrars, depositories, post offices etc; due 31-May post FY-end via Form 61A.

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).

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INCOME-TAX ACT, 2025	INCOME-TAX ACT, 1961
2025 provision	1961 counterpart
s. 454 -- Penalty re Failure to Furnish SFT or Reportable Account	s. 271FA