Section 455 — Penalty re Inaccuracy in SFT | ITA 2025

Section 455 of the Income-tax Act, 2025 corresponds to s. 271 FAA of the Income-tax Act, 1961. STATUTORY ARCHITECTURE INR 50,000 for inaccurate information in SFT or reportable account statement. PRACTITIONER PLANNING NOTES Cross-verify…

Section 455 — - PENALTY RE INACCURACY IN SFT

Section 455 of the Income-tax Act, 2025 corresponds to s. 271FAA of the Income-tax Act, 1961.

Statutory text — Income-tax Act, 2025

(1) The prescribed income-tax authority referred to in section 508 may direct t hat a person required to furnish a statement under sub-section (1) of the said section shall pay penalty of ` 50000, if such person—

(a) provides inaccurate information in the statement or fails to furnish correct information within the period specified under section 508(8); or

(b) fails to comply with the due diligence requirement under section 508(9).

(2) The prescribed income-tax authority referred to in section 508, shall direct that reporting financial institution referred to in section 508(1)(k) shall, in addition to the penalty under sub-section (1) of this section, if any, pay a sum of ` 5000 for every inaccurate reportable account, if—

(a) the said institution provides inaccurate information in the statement required to be furnished under section 508(1); and

(b) the inaccuracy in the said statement is due to false or inaccurate infor- mation furnished by the holder or holders of the relevant reportable account or accounts.

(3) The reporting financial institution as referred to in sub-section (2) shall be entitled to—

(a) recover the amount paid under sub-section (2) on behalf of the reportable account holder; or

(b) retain an amount equal to the sum so paid out of any moneys that may be in its possession, or may come to it from every such account holder. Penalty for failure to furnish statement or information or document by an eligible investment fund.

STATUTORY ARCHITECTURE

INR 50,000 for inaccurate information in SFT or reportable account statement.

PRACTITIONER PLANNING NOTES

Cross-verify customer KYC + PAN before reporting.

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).

← All sections (537)Act 2025 hub

INCOME-TAX ACT, 2025	INCOME-TAX ACT, 1961
2025 provision	1961 counterpart
s. 455 -- Penalty re Inaccuracy in SFT	s. 271FAA