Section 459 — Penalty re CbCR Filing Failure | ITA 2025

Section 459 of the Income-tax Act, 2025 corresponds to s. 271 GB of the Income-tax Act, 1961. STATUTORY ARCHITECTURE Tiered: INR 5,000 per day for first month, INR 15,000 per day thereafter, capped at INR 5 lakh; INR 50,000 for…

Section 459 — - PENALTY RE CBCR FILING FAILURE

Section 459 of the Income-tax Act, 2025 corresponds to s. 271GB of the Income-tax Act, 1961.

Statutory text — Income-tax Act, 2025

(1) If any reporting entity referred to in section 511, required to furnish the r eport referred to in sub-section (2) of the said section, for a reporting accounting year, fails to do so, the prescribed authority under that section may impose on such entity, a penalty of—

(a) ` 5000 for every day for which the failure continues, if the period of failure does not exceed one month;

(b) ` 15000 for every day for which the failure continues beyond the period of one month.

(2) If any reporting entity referred to in section 511 fails to produce the information and documents within the period allowed under sub-section (7) of the said section, the prescribed authority under that section may impose on such entity, a penalty of ` 5000 for every day during which the failure continues, beginning from the day immediately following the day on which the period for furnishing the information and document expires.

(3) If the failure referred to in sub-section (1) or (2) continues after an order im- posing a penalty under the said sub-section, has been served on the entity, then, irrespective of the provisions of the said sub-sections, the prescribed authority may impose penalty of fifty thousand rupees for every day for which such failure continues beginning from the date of service of such order.

(4) If a reporting entity referred to in section 511 provides inaccurate information in the report furnished under sub-section (2) of the said section, the prescribed authority under that section may impose on such entity, a penalty of ` 500000, if—

(a) the entity has knowledge of the inaccuracy at the time of furnishing the report but fails to inform the prescribed authority; or

(b) the entity discovers the inaccuracy after the report is furnished and fails to inform the prescribed authority and furnish correct report within fifteen days of such discovery; or

(c) the entity furnishes inaccurate information or document in response to the notice issued under section 511(7). Penalty for failure to submit statement under section 505.

STATUTORY ARCHITECTURE

Tiered: INR 5,000 per day for first month, INR 15,000 per day thereafter, capped at INR 5 lakh; INR 50,000 for inaccuracies. Country-by-Country Report under BEPS Action 13.

PRACTITIONER PLANNING NOTES

Multinational groups above EUR 750M consolidated revenue -- file CbCR in jurisdiction of UPE; Form 3CEAD by 12 months from end of reporting accounting year.

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. 459 -- Penalty re CbCR Filing Failure	s. 271GB