Section 271AA: Penalty for failure to keep and maintain information and documents, etc. in respect of certain transactions
A penalty of a sum equal to 2% of the value of each specified domestic transaction have been prescribed on failure to keep and maintain such information and document as required u/s 92D or failure to report such transaction or maintain or furnishing correct information or document in relation to Specified Domestic transactions
| Section | Nature of default | Minimum penalty | Maximum penalty |
| (1) | (2) | (3) | (4) |
| 271AA | Failure to keep and maintain information and document in respect of international transaction or (with effect from July 1,2012) failure to report international transactions [with effect from April 1,2013}, these provisions are also applicable in the case of specified domestic transactions | 2per cent of the value of each international transaction |
Reference:
Section 271AA, of the Income tax act, 1961-
Penalty for failure to keep and maintain information and document, etc., in respect of certain transactions under section 271AA
Without prejudice to the provisions of section 271 or section 271BA, if any person in respect of an international transaction [or specified domestic transaction],—
(i) fails to keep and maintain any such information and document as required by sub-section (1) or sub-section (2) of section 92D;
(ii) fails to report such transaction which he is required to do so; or
(iii) maintains or furnishes an incorrect information or document,
the Assessing Officer or Commissioner (Appeals) may direct that such person shall pay, by way of penalty, a sum equal to two per cent of the value of each international transaction [or specified domestic transaction] entered into by such person.