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Penalties
Section Nature of Default Basis of Charge Quantum of Penalty
221(1) Failure to pay tax; i.e., non-payment of tax required by notice u/s. 156 (Refer Note 1) — Not to exceed total amount of tax in arrears
270A (newly inserted w.e.f. 1-4-2017) Under-reporting or misreporting of income — Under-reporting of income – 50% of tax payable on under-reported income
— Under-reporting of income resulting from misreporting of income – 200% of tax payable
271(1)(b) (Up to assessment year 2016-17) Non-compliance with notice u/s. 142(1) or 
sec. 115WD(2) to file return of income or return of fringe benefits or to produce documents required by assessing officer u/s. 143(2) or 115WE(2) or to produce evidence on which assessee relies or u/s. 142(2A) to get accounts audited (Refer Note 4)		 — ₹ 10,000/- for each failure in addition to tax, if any, payable
271(1)(c), 271(1)(d) (Up to assessment year 2016-17) Concealment of particulars of income or particulars of fringe benefits, or furnishing inaccurate particulars thereof (Refer Note 4) Tax sought to be evaded (from assessment year 2016-17, based on formula as provided in Explanation 4) Minimum – Amount of tax sought to be evaded maximum – 3 times the minimum – in addition to tax, if any, payable
271A Failure to keep, maintain or retain books or documents u/s. 44AA — ₹ 25,000/-
271AA Failure to keep and maintain information and documents u/s. 92D, failure to report transactions and maintaining or furnishing of incorrect information/document International transaction or specified domestic transactions 2% of value of each International transaction or specified domestic transactions
    Failure to furnish the information and the documents as required under Section 92D(4) ₹ 5,00,000
271AAA Search under Section 132 before 30th June, 2012 (Refer Note 5) Undisclosed income of the specified previous year 10% of undisclosed income
271AAB Search under Section 132 on or after 1st July, 2012 — Undisclosed income of the specified previous year, and assessee admits during the search and satisfies other conditions — 10% of undisclosed income
    — Undisclosed income of the specified previous year, and assessee admits in the return of income filed after the search and satisfies other conditions — 20% of undisclosed income
    — Not covered by either of the above situations — 60% of undisclosed income
271B Failure to get accounts audited or furnish Tax Audit Report as required u/s. 44AB Total sales, turnover, or gross receipts 0.5% of total sales, turnover or gross receipts or ₹ 1,50,000/- whichever is less
271BA Failure to furnish a report as required u/s. 92E — ₹ 1,00,000/-
271C Failure to deduct the whole or part of the tax as required by or under Chapter XVII-B (Ss. 192 to 196D) or failure to pay the whole or part of tax 
u/s. 115-O, or second proviso to section 194B		 Amount of tax not deducted/paid Equal to the amount of tax failed to be deducted/paid
271CA Failure to collect whole or part of tax as required by or under Chapter XVIIBB (Section 206C) Amount of tax not collected Equal to the amount of tax the person has failed to collect
271D Contravention of the provisions of S. 269SS; i.e., by taking or accepting any loan or deposit or specified sum otherwise than by modes specified therein Amount of loan or deposit or specified sum so taken or accepted Equal to the amount of loan or deposit or specified sum so taken or accepted
NEWLY INSERTED
271DA Contravention of the provisions of S. 269ST; i.e., receipt of an amount of ₹ 2,00,000/- or more –
  1. In aggregate from a person in a day
  2. In respect of a single transaction: OR
  3. In respect of transaction relating to one event or occasion from a person

otherwise than by digital modes

 Amount of receipts (from 1st April 2017) so taken or accepted. Equal to the amount of such receipt
271E Contravention of S. 269T; i.e., repayment of any loan or deposit or specified advance (otherwise than by modes specified therein Amount of deposit or specified advance so repaid Equal to the amount of loan or deposit or specified advance so repaid
271F (upto 1st day of april 2018) Failure to furnish Return of Income u/s. 139(1) before the end of the relevant Assessment Year — ₹ 5,000/-
271FA Failure to furnish Annual Information Return under Section 285BA(1) — ₹ 100/- for every day during which the failure continues
271FA Failure to furnish annual information return within the period specified in the notice issued under Section 285BA(5) — ₹ 500/- for every day during which the failure continues, beginning from the day immediately following the day on which the time specified in such notice for furnishing the return expires
271FAA Furnishing of inaccurate information by prescribed financial institution due to failure to comply with prescribed due diligence requirement

Failure to inform the prescribed authority about inaccuracy at the time of furnishing the statement of financial transaction or reportable account

Failure to inform about inaccuracy after discovering such inaccuracy and failure to furnish correct information within the time specified

 ___ ₹ 50,000/-
271FAB Failure to furnish statement/information/document by eligible investment Fund under section 9A(5) --- ₹ 500,000/-
271FB Failure to furnish Return of fringe benefit under section 115WD(1) — ₹ 100/- for every day during which the failure continues
271G Failure to furnish information or document 
u/s. 92D(3) (Refer Note 6)		 International transactions or specified Domestic transaction 2% of value of International transaction or specified domestic transaction for each such default
271GA Failure to furnish information/document by an Indian concern as required under newly inserted section 285A Value of transaction which has effect of transferring directly or indirectly management/control of Indian concern 2% of the value of transaction
    In any other case ₹ 500,000/-
271GB (newly inserted w.e.f. 
1-4-2017)		 Failure to furnish report or furnishing inaccurate report under section 286 in respect of international group Failure to furnish report under section 286(2) ₹ 5,000 for every day during which failure continues and period of failure is less than 1 month or

₹ 15,000 for every day during which failure continues and period of failure exceeds 1 month
    Failure to produce information and documents pursuant to a notice within prescribed period ₹ 5,000 for every day during which failure continues beginning from the day following the day on which the prescribed period expires
    Failure to comply with order directing payment of penalty under Section 286(1) or (2) ₹ 50,000 for every day during which failure continues beginning from date of service of order
    Providing inaccurate information in report in spite of knowledge of same or furnishing of inaccurate information or document in response to notice ₹ 5,00,000
271H Failure to furnish TDS statements by due date or furnishing incorrect information in the TDS statement (with effect from July 1, 2012) — From ₹ 10,000/- to ₹ 100,000/-.
271-I Failure to furnish or furnishing of inaccurate information in respect of payment of any sum to a non-resident or to a foreign company whether chargeable or not — ₹ 100,000/-
271J W.e.f. 1st April, 2017, failure to furnish or furnishing of inaccurate information in reports or certificates by an accountant or a merchant banker or a registered valuer. — ₹ 10,000/- for each such report or certificate.
272A(1) Failure to answer questions, sign statements, attend summons u/s. 131(1) or failure to comply with the notice u/s. 142(1) or u/s. 143(2) or failure to comply with direction issued under section 142(2A) — ₹ 10,000/- for each failure
272A(2) Failure to:
  1. Comply with notice u/s. 94(6) – furnishing information regarding securities
  2. Give notice of discontinuance of business — Section 176(3)
  3. Furnish in due time returns, statements, or particulars u/ss. 133, 206 or 285B
  4. Allow inspection of any register(s) — Section 134
  5. Furnish returns u/s. 139(4A) or 139(4C)
  6. Deliver in due time a declaration mentioned in Section 197A
  7. Furnish a certificate u/s. 203.
  8. Deduct and pay tax u/s. 226(2).
  9. Furnish returns/statements/certificate u/s. 206C.
  10. Furnish a statement of particulars of perquisites and profits in lieu of salary u/s. 192(2C)
  11. Deliver in due time a declaration referred to in Section 206C(1A)
  12. Deliver in due time, quarterly return specified in Section 206A(1)
  13. Deliver in due time, a statement referred to in Section 200(2A) of 206(3A)
 — ₹ 100/- for every day during which the failure continues. However, amount of penalty for point Nos. 3, 6, 7, 9, 11, 12 and 13 shall not exceed amount of tax deductible or collectible
272AA Failure to furnish the prescribed information required u/s. 133B (refer to Form No. 45D) — Up to ₹ 1,000/-
272B Failure to obtain PAN or quote PAN or intimate false PAN — ₹ 10,000/-
272BB Failure to apply for Tax Deduction Account Number (TAN) (Section 203A) — ₹ 10,000/-
272BB(1A) Failure to quote Tax Deduction/Collection Account Number or quoting of false number in challans, certificates, statements or other documents referred to in Section 203A(2)   ₹ 10,000/-

NOTE:

  1. No penalty shall be levied u/s. 221(1) if the assessee proves that the default was for good and sufficient reasons.
  2. No penalty is imposable for any failure u/ss. 271(1)(b), 271A, 271AA, 271B, 271BA, 271BB, 271C, 271CA, 271D, 271E, 271F, 271FA, 271FB, 271FAB, 271G, 271GA, 271H, 271I, 271J, 272A(1)(c) or (d), 272A(2), 272AA(1), 272B, 272BB(1), 272BBB(1), 272BB(1A)(b), 273(1)(b), 273(2)(b) or (c) if the person or assessee proves that there was a reasonable cause for such failure (S. 273B).
  3. Penalty u/s. 271 can also be levied by Commissioner.
  4. Penalty u/s. 271(1) can be levied even if no tax is payable on the income assessed.
  5. No penalty shall be imposed u/s. 271AAA, if the assessee admits undisclosed income, substantiates the manner of deriving such undisclosed income and pays tax together with interest in respect of the undisclosed income. It will not be applicable for searches conducted on or after 1st July, 2012.
  6. From 1st October, 2014, Transfer Pricing Officer as referred to in section 92CA is also authorised to levy penalty under 
    section 271G.

 

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