Section 463 — Penalty on Professionals (Accountants, Valuers, Merchant Bankers) | ITA 2025

Section 463 of the Income-tax Act, 2025 corresponds to s. 271 J (FA 2017) of the Income-tax Act, 1961. STATUTORY ARCHITECTURE INR 10,000 for any incorrect information in any report or certificate by accountant, merchant banker or…

Section 463 — - PENALTY ON PROFESSIONALS (ACCOUNTANTS, VALUERS, MERCHANT BANKERS)

Section 463 of the Income-tax Act, 2025 corresponds to s. 271J (FA 2017) of the Income-tax Act, 1961.

Statutory text — Income-tax Act, 2025

(1) Any accountant or merchant banker or registered valuer, shall be liable to p ay a penalty of ` 10000 for any incorrect information in any report or certif- icate furnished under any provision of this Act or the rules made thereunder.

(2) The penalty under sub-section (1) shall be payable for each such report or cer- tificate.

(3) The penalty under sub-section (1) shall be payable on directions of the Assessing Officer or the Joint Commissioner (Appeals) or the Commissioner (Appeals) where the incorrect information mentioned in sub-section (1) is found by such authority in the course of any proceedings under this Act.

(4) In this section,—

(a) “merchant banker” means Category I merchant banker registered with the Securities and Exchange Board of India established under section 3 of the Securities and Exchange Board of India Act, 1992 (15 of 1992); and

(b) “registered valuer” means a person registered as a valuer under section 514. Penalty for failure to furnish statements, etc.

Corresponding provision — 1961 regime

INCOME-TAX ACT, 2025	INCOME-TAX ACT, 1961
2025 provision	1961 counterpart
s. 463 -- Penalty on Professionals (Accountants, Valuers, Merchant Bankers)	s. 271J (FA 2017)

STATUTORY ARCHITECTURE

INR 10,000 for any incorrect information in any report or certificate by accountant, merchant banker or registered valuer.

PRACTITIONER PLANNING NOTES

Practitioner risk: adverse to CA practice; ICAI ethics + s. 271J penalty.
Defences: bona fide reliance on assessee records; documented qualifications and limitations of scope.

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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