Penalty for failure to furnish statements, etc.

Section 464 — PENALTY FOR FAILURE TO FURNISH STATEMENTS, ETC.

Section 464 of the Income-tax Act, 2025 corresponds to s. 271K of the Income-tax Act, 1961.

STATUTORY ARCHITECTURE

Section 464 empowers the Assessing Officer to impose a penalty on two classes of entities for specified reporting failures: research associations, universities, colleges and other institutions referred to in s. 45, for failing to deliver or furnish documents prescribed under s. 45(4)(a); and institutions or funds, for failing to deliver a statement within the time prescribed under s. 354(1)(e) or to furnish a certificate prescribed under s. 354(1)(g). The penalty is not less than ₹10000 and may extend up to ₹100000.

KEY ELEMENTS

• Authority: the Assessing Officer "may impose" the penalty.
• Amount: not less than ₹10000, and up to ₹100000.
• Clause (a): the research association, university, college or other institution referred to in s. 45, if it fails to deliver or furnish the documents prescribed under s. 45(4)(a).
• Clause (b): the institution or fund, if it fails to deliver or cause to be delivered a statement within the time prescribed under s. 354(1)(e), or to furnish a certificate prescribed under s. 354(1)(g).

CHANGES FROM THE 1961 ACT

The section corresponds to s. 271K of the 1961 Act, which provided for a penalty of not less than ten thousand rupees and extending to one lakh rupees; the range is the same. Visible differences:

• s. 271K opened with "Without prejudice to the provisions of this Act"; s. 464 does not.
• The Assessing Officer "may impose a penalty" in place of "may direct that a sum ... shall be paid by way of penalty".
• Clause (i) of s. 271K referred to institutions under clauses (ii) and (iii), and the company under clause (iia), of s. 35(1), and to a statement under clause (i) or a certificate under clause (ii) of s. 35(1A). Clause (a) of s. 464 refers to institutions referred to in s. 45 and to documents prescribed under s. 45(4)(a); it does not mention a company.
• Clause (ii) of s. 271K referred to s. 80G(5)(viii) and (ix); clause (b) of s. 464 refers to s. 354(1)(e) and (g).

PRACTITIONER NOTES

• The penalty is discretionary ("may impose"), but once imposed it cannot be below ₹10000.
• Under clause (b), a penalty can arise either from late delivery of the statement (by reference to the time prescribed under s. 354(1)(e)) or from failure to furnish the certificate under s. 354(1)(g); the two failures are stated as alternatives.
• Clause (a) is framed as a failure to "deliver or furnish" the prescribed documents; the text does not itself refer to a time limit.
• An entity that was a company referred to in s. 35(1)(iia) of the 1961 Act should check whether it falls within the words "research association, university, college or other institution referred to in section 45".

CROSS-REFERENCES

• s. 45 — identifies the entities covered by clause (a).
• s. 45(4)(a) — the prescribed documents in clause (a).
• s. 354(1)(e) — the time for delivering the statement in clause (b).
• s. 354(1)(g) — the certificate in clause (b).
• s. 271K of the 1961 Act — the corresponding provision.