Penalties under the Income Tax Act, 1961

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Sl. Section Nature of default Penalty leviable

No.

1 140A(3) Failure to pay wholly or partly - Such amount as Assessing

Officer may impose but not
exceeding tax in arrears
(a) self-assessment tax/fringe
benefit tax, or

(b) interest, and fee, or

(c) both

under section 140A(1)

2 158BFA(2) Determination of undisclosed Minimum : 100 per cent of tax

income of block period leviable in respect of
undisclosed income

Maximum : 300 per cent of

tax leviable in respect of
undisclosed income.

3 221(1) Default in making payment of tax Such amount as Assessing

Officer may impose but not
exceeding amount of tax in
arrears

4 234E Failure to file statement within Rs. 200 for every day during
time prescribed in section 200(3) which failure continues but
or in proviso to section 206C(3) not exceeding tax
deductible/collectible

5 234F Default in furnishing statement of Rs. 5,000 if return is furnished

income within time as prescribed after due date specified under
under section 139(1) section 139(1). However if the
total income of the person
does not exceed Rs. 5 lakhs
then Rs. 1,000 shall be the
late filing fees.

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6 234G Fee for default in submission of Rs. 200 per day
statement /certificate prescribed
under section 35/Section 80G

7 234H Fee for default in intimating the Maximum of Rs. 1,000

Aadhaar Number

8 270A(1) Under-reporting and misreporting A sum equal to 50% of the

of income amount of tax payable on
under-reported income.

However, if under-reported
income is in consequence of
any misreporting thereof by
any person, the penalty shall
be equal to 200% of the
amount of tax payable on
under-reported income

9 271(1)(b) Failure to comply with a notice Fixed at Rs. 10,000 for each
under section failure
115WD(2)/115WE(2)/142(1) or
section 143(2) or failure to comply Note:– However, the above
with a direction under section penalty shall not be levied to
142(2A) and in relation to any
assessment for the A.Y
commencing on or after the
1st day of April, 2017.

10 271(4) Distribution of profits by Not exceeding 150 per cent of

registered firm otherwise than in difference between tax on
accordance with partnership deed partner’s income assessed
and as a result of which partner and tax on income returned,
has returned income below the in addition to tax payable
real income
Note:- However, the above
penalty shall not be levied to
and in relation to any
assessment for the A.Y
commencing on or after the
1st day of April, 2017.

11 271A Failure to keep, maintain, or Rs. 25,000

retain books of account,
documents, etc., as required
under section 44AA

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12 271AA(1) (1) Failure to keep and maintain 2% of value of each
information and documents international transaction/or
required by section 92D(1) or specified domestic
92D(2) transaction entered into

(2) Failure to report such

transaction

(3) Maintaining or furnishing

incorrect information or document

13 271AA(2) Failure to furnish information and Rs. 5,00,000/-

document as required under
Section 92D(4)

14 271AAA Where search has been initiated 10% of undisclosed income

before 1-7-2012 and undisclosed
income found

15 271AAB(1) Where search has been initiated (a) 10% of undisclosed

on or after 1-7-2012 but before income of the specified
15-12-2016 and undisclosed previous year if assessee
income found admits the undisclosed
income; substantiates the
manner in which it was
derived; and on or before the
specified date pays the tax,
together with interest thereon
and furnishes the statement
of income for the specified
previous year declaring such
undisclosed income

(b) 20% of undisclosed

income of the specified
previous year if assessee
does not admit the
undisclosed income, and on
or before the specified date
declare such income in the
statement of income
furnished for the specified
previous year and pays the
tax, together with interest
thereon;

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 (c) 60% of undisclosed
income of the specified
previous year if it is not
covered by (a) or (b) above

16 271AAB(1A) Where search has been initiated (a) 30% of undisclosed

on or after 15-12-2016 and income of the specified
undisclosed income found previous year if assessee
admits the undisclosed
income; substantiates the
manner in which it was
derived; and on or before the
specified date pays the tax,
together with interest thereon
and furnishes the statement
of income for the specified
previous year declaring such
undisclosed income

(b) 60% of undisclosed

income of the specified
previous year in any other
case.

17 271AAC Income determined by the 10% of tax payable under

Assessing Officer includes any section 115BBE.
income referred to in section 68,
section 69, section 69A, section
69B, section 69C or section 69D
for any previous year. [if such
income is not included by
assessee in his return or tax in
accordance with section 115BBE
has not been paid]

18 271AAD Penalty, if during any proceedings 100% of such false entries or

under the Act, it is found that in omitted entry
the books of accounts maintained
by assessee, there is:

a) A false entry; or

b) Any entry relevant for

computation of total income of
such person has been omitted to
evade tax liability.

19 271B Failure to get accounts audited or One-half per cent of total

furnish a report of audit as sales, turnover or gross
required under section 44AB receipts, etc., or Rs. 1,50,000,
which-ever is less

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20 271BA Failure to furnish a report from an Rs. 1,00,000
accountant as required by section
92E

21 271BB Failure to subscribe any amount 20 per cent of such amount

to units issued under scheme
referred to in section 88A(1)

22 271C Failure to deduct tax at source, Amount equal to tax not

wholly or partly, under sections deducted or paid
192 to 196D (Chapter XVII-B) or
second proviso to section 194B

23 271CA Failure to collect tax at source as Amount equal to tax not

required under Chapter XVII-BB collected

24 271D Taking or accepting any loan or Amount equal to loan or

deposit or specified sum in deposit or specified sum so
contravention of the provisions of taken or accepted
Section 269SS.

'Specified sum' means any sum of

money receivable, whether as
advance or otherwise, in relation
to transfer of an immovable
property, whether or not the
transfer takes place.

25 271DA Receipt of an amount of Rs. 2 Amount equal to such receipt

lakh or more in contravention of
provisions of Section 269ST.

26 271DB Failure to provide facility for Rs. 5,000 rupees for every
accepting payment through day of default
prescribed electronic modes of
payment as referred to in section
269SU

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27 271E Repayment of any loan or deposit Amount equal to loan or
or specified advance otherwise deposit or specified advance
than in accordance with provision so repaid
of Section 269T.

'Specified advance' means any

sum of money in the nature of
advance, by whatever name
called, in relation to transfer of an
immovable property, whether or
not transfer takes place.

28 271FA Failure to furnish an statement of Rs. 500 per day of default

financial transaction or reportable
account as required under section
285BA(1)2

29 271FAA Furnishing of inaccurate Rs. 50,000

information in statement of
financial transaction or reportable
account

Failure to furnish statement of Rs. 1,000 per day of default

financial transaction or reportable
account within the period
specified in notice u/s 285BA(5)

30 271FAB Section 9A provides that fund Rs. 5,00,000

management activity carried out
by an eligible offshore investment
fund through an eligible fund
manager acting on behalf of such
fund shall not constitute business
connection in India (subject to
certain conditions).

The provision requires that

eligible investment fund shall
furnish within 90 days from the
end of the financial year a
statement, in respect of its
activities in a financial year, in the
prescribed form containing
information relating to fulfilment of
specified conditions and such
other information or documents
as may be prescribed. Penalty to
be levied if investment fund failed
to comply with the requirement.

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31 271G Failure to furnish any information 2% of the value of the
or document as required by international
section 92D(3) transaction/specified
domestic transaction for each
failure

32 271GA Section 285A provides for Penalty shall be:

reporting by an Indian concern if
following two conditions are a) a sum equal to 2% of value
satisfied: of transaction in respect of
which such failure has taken
a) Shares or interest in a foreign place, if such transaction had
company or entity derive effect of, directly or indirectly,
substantial value, directly or transferring right of
indirectly, from assets located in management or control in
India; and relation to the Indian concern;

b) Such foreign company or entity b) a sum of Rs. 5,000 in any

holds such assets in India through other case.
or in such Indian concern.

In this case, the Indian entity shall

furnish the prescribed information
for the purpose of determination
of any income accruing or arising
in India under Section 9(1)(i).

In case of any failure, the Indian

concern shall be liable to pay
penalty.

33 271GB(1) Failure to furnish report under Rs. 5,000 per day upto 30
section 286(2) days and Rs. 15,000 per day
beyond 30 days

34 271GB(2) Failure to produce the information Rs. 5,000 for every day
and documents within the period during which the failure
allowed under section 271GB(6) continues.

35 271GB(3) Failure to furnish report or failure Rs. 50,000 for every day for
to produce information/documents which such failure continues
under section 286 even after beginning from the date of
serving order under section serving such order.
271GB(1) or 271GB(2)

36 271GB(4) Failure to inform about inaccuracy Rs. 5,00,000

in report furnish under section
286(2)

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 Or furnishing of inaccurate
information or document in
response to notice issued under
section 286(6).

37 271H Failure to deliver/cause to be W.e.f. 1-10-2014 Assessing

delivered a statement within the Officer may direct payment of
time prescribed in section 200(3) penalty. Penalty shall not be
or the proviso to section 206C(3), less than Rs. 10,000 but may
or furnishes incorrect information extend to Rs. 1,00,000
in the statement

38 271K Penalty of default in submission Rs. 10,000 to Rs. 1 lakh

of statement/certificate prescribed
under section 35/Section 80G

39 271-I As per section 195(6) of the Act, Rs. 1,00,000

any person responsible for paying
to a non-resident or to a foreign
company, any sum (whether or
not chargeable to tax), shall
furnish the information relating to
such payment in Form No. 15CA
and 15CB. Penalty shall be levied
in case of any failure.

40 271J Furnishing of incorrect information Rs. 10,000 for each incorrect

in any report or certificate by an report or certificate
accountant or a merchant banker
or a registered valuer

41 272A(1) Refusal or failure to : Rs. 10,000 for each

failure/default

(a) answer questions

(b) sign statement

(c) attend to give evidence or

produce books of account, etc., in
compliance with summons under
section 131(1)

(d) comply with notices u/s

142(1)/143(2) or failure to comply
with direction issued u/s 142(2A).

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42 272A(2) Failure to :

(a) furnish requisite information in Rs. 10,000 for each

respect of securities as required failure/default. (In respect of
under section 94(6) ; penalty for failure, in relation
to a declaration mentioned in
section 197A, a certificate as
(b) give notice of discontinuance required by section 203 and
of business or profession as returns u/s 206 and 206C and
required under section 176(3) ; statements under Section
200(2A) or section 200(3) or
proviso to section 206C(3) or
(c) furnish in due time returns, section 206C(3A), penalty
statements or certificates, deliver shall not exceed amount of
declaration, allow inspection, etc., tax deductible or collectible)
under sections 133, 134, 139(4A),
139(4C), 192(2C), 197A, 203,
206, 206C, 206C(1A) and 285B;

(d) deduct and pay tax under

section 226(2)

(e) file a copy of the prescribed

statement within the time
specified in section 200(3) or the
proviso to section 206C(3) (up to
1-7-2012)

(f) file the prescribed statement

within the time specified in section
206A(1)

(g) Failure to deliver or cause to

be delivered a statement under
Section 200(2A) or Section
206C(3A) within prescribed time.

With effect from June 1, 2015, it is

mandatory for an office of the
Government, paying TDS or TCS,
as the case may be, without
production of a challan, to deliver
a statement in the prescribed
form and manner to the
prescribed authority.

43 272AA(1) Failure to comply with section Not exceeding Rs. 1,000

133B

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 44 272B Failure to comply with provisions Rs. 10,000 for each default
relating to PAN or Aadhar as
referred to in section
139A/139A(5)(c)/(5A)/(5C)

45 272BB(1) Failure to comply with section Rs. 10,000 for each

203A failure/default

46 272BB(1A) Quoting false tax deduction Rs. 10,000

account number/tax collection
account number/tax deduction
and collection account number in
challans/
certificates/statements/documents
referred to in section 203A(2)

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