Types of Penalties imposed under Income Tax Act. 1961

Such an amount as the Assessing Officer may impose but not exceeding the amount of tax.

Determination of undisclosed income of block period

Minimum : 100 per cent of tax leviable in respect of undisclosed income Maximum : 300 per cent of tax leviable in respect of undisclosed income.

Under-reporting and misreporting of income

A sum equal to 50% of the 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

Failure to comply with notice issued under section 142(1) or section 143(2) and direction for audit under section 142(2A).

Rs. 10,000 for each failure. This section shall not apply to and in relation to any assessment for the A.Y commencing on or after the 1st day of April, 2017.

Concealment of income or furnishing inaccurate particulars of income

100% to 300% of the tax evaded. This section shall not apply to and in relation to any assessment for the A.Y commencing on or after the 1st day of April, 2017.

Distribution of profits by registered firm otherwise than in accordance with partnership deed and as a result of which partner has returned income below the real income

Not exceeding 150 per cent of difference between tax on partner’s income assessed and tax on income returned, in addition to tax payable This section shall not apply to and in relation to any assessment for the A.Y commencing on or after the 1st day of April, 2017.

Failure to keep, maintain or retain books of account, documents, etc., as are required under section 44AA

Failure to keep and maintain information and documents required in respect of international transaction or specified domestic transaction, failure to report such transaction, etc.

2% of the value of each international transaction or specified domestic transaction entered into by the taxpayer.

Failure to furnish information and document as required under Section 92D(4)

Penalty in case of search (Search is initiated on or after July 1, 2012 but before December 15, 2016)

10%, 20% and 60% of the undisclosed income, as the case may be.

Penalty in case of search (if search is initiated on or after December 15, 2016)

30% or 60% of undisclosed income, as the case may be

Penalty where income includes any income referred to in Section 68, Section 69, Section 69A, Section 69B, Section 69C or Section 69D.

10% of tax payable on undisclosed income

Failure to get accounts audited or furnish a report of audit as required under section 44AB

One-half per cent of total sales turnover or gross receipts, etc., or Rs. 1,50,000, whichever is less

Failure to furnish a report from an accountant as required by section 92E

Failure to deduct tax at source, wholly or partly or failure to pay wholly or partly tax under section 115- O(2)

An amount equal to tax not deducted (in case of TDS) or tax not paid (in case of dividend distribution tax)

Failure to collect tax at source

An amount equal to tax not collected.

Taking or accepting certain loans or deposits or specified sum* in contravention of provisions of 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.

An amount equal to loan or deposit or specified sum so taken or accepted.

Accepting cash of Rs. 2,00,000 or more in contravention to Section

An amount equivalent to cash receipt

Repaying loans or deposits or specified advance* in contravention of provisions 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

An amount equal to loan or deposit or specified advance so repai

Failure to furnish the return of income before the end of the assessment year

Rs. 5,000 [Not applicable for any AY commencing on or after 1st April, 2018]

Failure to furnish statement of financial transaction or reportable account (previously called as Annual Information Return) as required under section 285BA(1)

Rs. 500 or Rs. 1,000, as the case may be, per day of default

Failure to furnish an accurate statement of financial transaction or reportable account

Failure to furnish statement or information or document [as required under Section 9A(5)] by an eligible investment fund within the prescribed time-limit.

An amount equal to Rs. 5,00,000

Failure to furnish any information or document as required by section 92D(3)

2% of the value of the international transaction or specified domestic transaction for each such failure

Failure to furnish information or document under section 285A* by an Indian concern. *Section 285A provides that where any share or interest of foreign company derives its value substantially from assets located in India, and such company holds such assets in India through Indian Concern then such Indian concern shall furnish the prescribed information to the income-tax authority.

A sum equal to 2% of the value of the transaction in respect of which such failure has taken place, if such transaction had the effect of directly or indirectly transferring the right of management or control in relation to the Indian concern; An amount equal to Rs. 5,00,000 in any other case

Failure to furnish report under section 286(2)

Rs. 5,000 per day up to 30 days and Rs. 15,000 per day beyond 30 days

Failure to produce the information and documents within the period allowed under section 271GB(6)

Rs. 5,000 for every day during which the failure continues.

Failure to furnish report or failure to produce information/documents under section 286 even after serving order under section 271GB(1) or 271GB(2)

Rs. 50,000 for every day for which such failure continues beginning from the date of serving such order.

Failure to inform about inaccuracy in report furnish under section 286(2) Or furnishing of inaccurate information or document in response to notice issued under section 286(6).

Failure to file the TDS/TCS return

Not less than Rs.10,000 and upto Rs. 1,00,000

Failure to furnish information or furnishing of inaccurate information under Section 195(6) in respect of payment made to non-residents.

An amount equal to Rs. 1,00,000

Furnishing of Incorrect information by an Chartered Accountant or a merchant banker or a registered valuer in a report or certificate

Rs. 10,000 for each such report or certificate

Failure to co-operate with the tax authorities, (i.e., not answering any question, not signing statements, etc.) or failure to comply with notice issued under section 142(1)/143(2) or failure to comply with direction issued under section 142(2A).

Rs. 10,000 for each failure/default

Penalty under section 272A(2)

Rs. 100 per day for every day during which the default continues.

Failure to comply with section 133B

An amount not exceeding Rs. 1,000

Failure to comply with provisions relating to Permanent Account Number (PAN)

Failure to comply with provisions relating to Tax Deduction Account Number or Tax Collection Account Number

Failure to comply with the provisions relating to Tax Collection Account Number