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Penalties for different Defaults under Income Tax Act.

  1. Penalty where Search has been initiated [Section 271AAB(1A)]

  2. Penalty in respect of certain income [Section 271AAC]

  3. Penalty for failure to furnish statements, etc. [Section 271H]

  4. Penalty for failure to comply with provisions of section 269ST [Section 271DA]

  5. Penalty for furnishing incorrect information in reports or certificates [Section 271J]

(1). Penalty where Search has been initiated [Section 271AAB(1A)]

The Assessing Officer may, notwithstanding anything contained in any other provisions of this Act, direct that, the assessee shall pay by way of penalty, in addition to tax, if any, payable by him,—

  1. a sum computed @ 30% of the undisclosed income of the specified previous year, if the assessee—

    1. in the course of the search, in a statement under sub-section (4) of section 132, admits the undisclosed income and specifies the manner in which such income has been derived;

    2. substantiates the manner in which the undisclosed income was derived; and

    3. on or before the specified date—

      1. pays the tax, together with interest, if any, in respect of the undisclosed income; and

      2. furnishes the return of income for the specified previous year declaring such undisclosed income therein;

  2. a sum computed @ 60% of the undisclosed income of the specified previous year, if it is not covered under the provisions of clause (a).

'PENALTIES' Under Income Tax Act. 1961

(2) Penalty in respect of certain income [Section 271AAC]

  1. The Assessing Officer may, notwithstanding anything contained in this Act other than the provisions of section 271AAB, direct that, in a case where the income determined includes any income referred to in section 68, section 69, section 69A, section 69B, section 69C or section 69D for any previous year, the assessee shall pay by way of penalty, in addition to tax payable under section 115BBE, a sum computed at the rate of 10% of the tax payable under section 115BBE(1)(i).

    However, no penalty shall be levied in respect of income referred to in section 68, section 69, section 69A, section 69B, section 69C or section 69D to the extent such income has been included by the assessee in the return of incomefurnished under section 139 and the tax in accordance with the provisions of section 115BBE(1)(i) has been paid on or before the end of the relevant previous year.

  2. No penalty under the provisions of section 270A shall be imposed upon the assessee in respect of the income referred to in section 271AAC(1).

  3. The provisions of sections 274 and 275 shall, as far as may be, apply in relation to the penalty referred to in this section.

(3) Penalty for failure to furnish statements, etc. [Section 271H]

  1. Penalty for failure to furnish TDS/TCS statement or furnishing incorrect information in the statement [Section 271H(1)]:

    Without prejudice to the provisions of the Act, a person shall be liable to pay penalty, if, he––

    1. fails to deliver or cause to be delivered a statement within the time prescribed in section 200(3) or the proviso to section 206C(3) relating to TCS; or

    2. furnishes incorrect information in the statement which is required to be delivered or cause to be delivered under section 200(3) or the proviso to section 206C(3).

  2. Quantum of penalty [Section 271H(2)]:

    The penalty referred to in sub-section (1) shall be a sum which shall not be less than Rs. 10,000 but which may extend to Rs.1,00,000.

  3. No penalty if statement of TDS/TCS filed within one year [Section 271H(3)]:

    Notwithstanding anything contained in the foregoing provisions of this section, no penalty shall be levied for the failure to file TDS/TCS statement within the time prescribed, if the person proves that after paying tax deducted or collected along with the fee and interest, if any, to the credit of the Central Government, he had delivered or caused to be delivered the statement referred to in section 200(3) or the proviso to section 206C(3) before the expiry of a period of one year from the time prescribed for delivering or causing to be delivered such statement.

  4. Penalty applicable only for tax deducted/collected on or after 1.7.2012:

    The provisions of this section shall apply to a statement referred to in section 200(3) or the proviso to section 206C(3) which is to be delivered or caused to be delivered for tax deducted at source or tax collected at source, as the case may be, on or after 1.7.2012.

(4) Penalty for failure to comply with provisions of section 269ST [Section 271DA]

If a person receives any sum in contravention of the provisions of section 269ST, he shall be liable to pay, by way of penalty, a sum equal to the amount of such receipt:

However, no penalty shall be imposable if such person proves that there were good and sufficient reasons for the contravention.

Any penalty imposable under section 271DA shall be imposed by the Joint Commissioner.

(5) Penalty for furnishing incorrect information in reports or certificates [Section 271J]

Without prejudice to the provisions of this Act, where the Assessing Officer or the Commissioner (Appeals), in the course of any proceedings under this Act, finds that:

— an 'accountant' means an accountant referred to in the Explanation below section 288(2); or

— a 'merchant banker' 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; or

— a 'registered valuer' means a person defined in section 2(oaa) of the Wealth-tax Act, 1957.

has furnished incorrect information in any report or certificate furnished under any provision of this Act or the rules made thereunder, the Assessing Officer or the Commissioner (Appeals) may direct that such accountant or merchant banker or registered valuer, as the case may be, shall pay, by way of penalty, a sum of `10,000 for each such report or certificate.

Related Topics...Penalty

[Section 270AA] : Immunity from Imposition of Penalty and Initiation of Proceedings under Section 276C or 276CC
Penalties for different Defaults under Income Tax Act.
Penalty for default in making payment of Self Assessment Tax [Section 221(1)]
Penalty For Under-Reporting And Mis-Reporting Of Income (Section 270A)
'PENALTIES' Under Income Tax Act. 1961.
Power of Commissioner to Grant Immunity from Penalty [Section 273AA]
Power to Reduce or Waive Penalty (Section 273A)
Types of Penalties imposed under Income Tax Act. 1961
 
 
 
 
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