Penalties in respect of default in making Income Tax payment in different Sections of Income Tax Act, 1961. Penalty for failure to pay self-assessment Income tax is Amount of arrears. Penalty for Determination of undisclosed income of block period will be 100%-300% of undisclosed income. Penalty for Default in making payment of Income tax will be such amount as or Assessing Officer may impose but not exceeding amount of tax in arrears.
| Section | Nature of default | Penalty leviable |
| (1) | (2) | (3) |
| 140A(3) | Failure to pay wholly or partly—(a) self-assessment tax/fringe benefit tax, or(b) interest, or(c) both u/s 140A(1) | Such amount as Assessing Officer may impose but not exceeding tax in arrears |
| 158BFA(2) | Determination of undisclosed income of block period | Minimum 100 per cent or Maximum 300 per cent of tax leviable in respect of undisclosed income. |
| 221(1) | Default in making payment of tax | Such amount as Assessing Officer may impose but not exceeding amount of tax in arrears |
| 234E (w.e.f. 1-7-2012) | Failure to file statement within time prescribed in section 200(3) or in proviso to section 206C(3) | Rs. 200 for every day during which failure continues but not exceeding tax deductible/collectible |
| 271(1)(b) | Failure to comply with a notice under section 115WD(2)/115WE(2)/142(1) or section 143(2) or failure to comply with a direction u/s 142(2A) | Fixed at Rs. 10,000 for each failure |
| 271(1)(c) | Concealment of particulars of income or fringe benefits or furnishing of inaccurate particulars of income or fringe benefits | Minimum 100 percent or Maximum 300 per cent of tax sought to be evaded in addition to tax payable |
| 271(4) | 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 |
| 271A | Failure to keep, maintain, or retain books of account, documents, etc., as required u/s 44AA | Rs. 25,000 |
| 271AA | (1) Failure to keep and maintain information and documents required by section 92D(1) or 92D(2)(2) Failure to report such transaction (w.e.f. 1-7-2012)(3) Maintaining or furnishing incorrect information or document (w.e.f. 1-7-2012) | 2% of value of each international transaction/or specified domestic transaction (from 1-4-2013) entered into |
| 271AAA | Where search has been initiated before 1-7-2012 and undisclosed income found | 10% of undisclosed income |
| 271AAB | Where search has been initiated on or (w.e.f. after 1-7-2012 and undisclosed income 1-7-2012) found | (a) 10% of undisclosed income of the specified 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 return 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 return of income furnished for the specified previous year and pays the tax, together with interest thereon;(c) Minimum 30% and maximum 90% of undisclosed income of the specified previous year if it is not covered by (a) or (b) above |
| 271B | Failure to get accounts audited or furnish a report of audit as required u/s 44AB | One-half per cent of total sales, turnover or gross receipts, etc., or Rs. 1,50,000, which-ever is less |
| 271BA | Failure to furnish a report from an accountant as required by section 92E | Rs. 1,00,000 |
| 271BB | Failure to subscribe any amount to units issued under scheme referred to in section 88A(1) | 20 per cent of such amount |
| 271C | Failure to deduct tax at source, wholly or partly, u/s 192 to 196D (Chapter XVII-B) or failure to pay wholly or partly tax u/s 115-O(2) or second proviso to section 194B | Amount equal to tax not deducted or paid |
| 271CA | Failure to collect tax at source as required under Chapter XVII-BB | Amount equal to tax not collected |
| 271D | Taking or accepting certain loans and deposits in contravention of provisions of section 269SS | Amount equal to loan or deposit taken or accepted |
| 271E | Repaying any loan or deposit specified in section 269T in contravention of its provisions | Amount equal to loan or deposit repaid |
| 271F | Failure to furnish return as required by section 139(1) or by its provisos before the end of the relevant assessment year | Rs. 5,000 |
| 271FA | Failure to furnish an annual information return as required u/s 285BA(1) | Rs. 100 per day of default |
| 271FB | Failure by an employer to furnish the return of fringe benefits as required u/s 115WD(1) | Rs. 100 for every day of default |
| 271G | Failure to furnish any information or document as required by section 92D(3) | 2% of the value of the international transaction/specified domestic transaction (from 1-4-2013) for each failure |
| 271H (w.e.f. 1-7-2012) | Failure to deliver/cause to be delivered a statement within the time prescribed in section 200(3) or the proviso to section 206C(3), or furnishes incorrect information in the statement | Not less than Rs. 10,000 but may extend to Rs. 1,00,000 |
| 272A(1) | Refusal or failure to :(a) answer questions(b) sign statement(c) attend to give evidence or produce books of account, etc., in compliance with summons u/s 131(1) | Rs. 10,000 for each failure/default |
| 272A(2) | Failure to :(a) furnish requisite information in respect of securities as required u/s 94(6) ;(b) give notice of discontinuance of business or profession as required u/s 176(3) ;(c) furnish in due time returns, statements or certificates, deliver declaration, allow inspection, etc., u/s 133, 134, 139(4A), 139(4C), 192(2C), 197A, 203, 206, 206C, 206C(1A) and 285B; (d) deduct and pay tax u/s 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) | Rs. 10,000 for each failure/default. (In respect of penalty for failure, in relation to a declaration mentioned in section 197A, a certificate as required by section 203 and returns u/s 206 and 206C and statements u/s 200(3) or proviso to section 206C(3), penalty shall not exceed amount of tax deductible or collectible) |
| 272AA(1) | Failure to comply with section 133B | Not exceeding Rs. 1,000 |
| 272B | Failure to comply with provisions of section 139A/139A(5)(c)/(5A)/(5C) | Rs. 10,000 |
| 272BB(1) | Failure to comply with section 203A | Rs. 10,000 for each failure/default |
| 272BB(1A) | Quoting false tax deduction account number/tax collection account number/tax deduction and collection account number in challans/certificates/statements/documents referred to in section 203A(2) | Rs. 10,000 |
Note : No penalty is imposable for any failure u/s 271(1)(b), 271A, 271AA, 271B, 271BA, 271C, 271CA, 271D, 271E, 271F, 271FA, 271FB, 271G, 271H, 272A(1)(c) or (d), 272A(2), 272AA(1), 272B, 272BB(1), 272BB(1A) and 272BBB if the person or Assessee proves that there was reasonable cause for such failure (section 273B).
Section 273AA provides that a person may make application to the Commissioner for granting immunity from penalty, if
(a) he has made an application for settlement u/s 245C and the proceedings for settlement have abated; and
(b) Penalty proceeding have been initiated under this Act. The application shall not be made after the imposition of penalty after abatement.