Penalty Chart under the Income Tax Act, 1961

Given below is the chart which shows section under which penalty can be imposed, nature of default and quantum of penalty.

PENALTIES UNDER INCOME TAX ACT

SectionNature of DefaultQuantum of penalty
Non Payment
221(1)Tax payments including  Self Assessment TaxAmount of tax in arrears
Failure to comply
271(1)(b)with the notice u/S 115WD(2)/ 115WE(2)/ 143(1)/ 142(2)Rs. 10,000 of each failure
271(1)(b)with direction u/s 142(2A) to get auditedRs. 10,000 of each failure
272A (1)Failure to answer questions or sign statementsRs. 10,000 of each failure
Concealment
271(1)(c)Concealment of income or inaccurate particulars100 % to 300 % of tax sought to be evaded
271AAAUndisclosed income found during search intimation u/s 13210% of undisclosed income
Book, Audit, loans
271AFailure to maintain books or documents u/s. 44AA.Rs. 25,000
271BFailure to get accounts audited  u/s. 44AB.0.5% of total sales, or Rs.1,50,000 whichever is less
271DTaking loan in contravention of Sec. 269SSEqual to amount of loan  taken
271ERepayment of loan in contravention of Sec. 269TAmount of deposit or repaid
271FFailure to furnish Return of IncomeRs. 5,000
International transactions
271AAFailure to keep and maintain information and documents u/s. 92D.2%  of value
271BAFailure to furnish a report as required u/s. 92E.Rs. 1,00,000
TDS
271CFailure to deduct TDS in full and partEqual to the amount failed to be deducted
271CAFailure to collect TDS in full and partEqual to the amount failed to be collected
272BB(1A)Quoting false TAN in challan/ statementsRs. 10,000
272BB(1)Failure to apply for TANRs. 10,000
271HFailure to furnish e TDS statementRs 10,000 to 1 lacks
272A(2) (g)Failure to furnish TDS certificateRs 100 per day .
272A(2)Failure to comply with department letterRs. 100 for every day during which the failure continues.
272AA(1)Failure to furnish information required u/s. 133BRs. 1,000
272BFailure to apply for Permanent Account Number (PAN)Rs. 10,000
272BBBFailure to apply for Tax Collection Account No. (TCN)Rs. 10,000

 

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