PENALTIES
[AY 2014-15 & AY 2015-16]
| Section | Nature of default | Penalty leviable |
| (1) | (2) | (3) |
| 140A(3) | Failure to pay wholly or partly— | Such amount as Assessing Officer may impose but not exceeding tax in arrears |
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(a) self-assessment tax/fringe benefit tax, or
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(b) interest, or
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(c) both
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| under section 140A(1) |
| 158BFA(2) | Determination of undisclosed income ofblock 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. |
| 221(1) | Default in making payment of tax | Such amount as Assessing Officer may impose but not exceeding amount of tax in arrears |
| 234E | 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 under section 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 per cent |
| Maximum : 300 per cent of tax sought to be evaded in addition totax payable |
| 271(4) | Distribution of profits by registered firm otherwise than in accordance withpartnership 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 under section 44AA | Rs. 25,000 |
| 271AA |
(1) Failure to keep and maintain information and documents required by section 92D(1) or 92D(2)
| 2% of value of each international transaction/or specified domestic transaction entered into |
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(2) Failure to report such transaction
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(3) Maintaining or furnishing incorrect information or document
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| 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 after 1-7-2012 and undisclosed income 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 under section 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, under sections 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 |
| 271FA1 | Failure to furnish an annual information return as required under section 285BA(1)2 | Rs. 100 per day of default |
| Failure to furnish annual information return within the period specified in notice u/s 285BA(5) | Rs. 500 per day of default |
| 271FB | Failure by an employer to furnish the return of fringe benefits as required under section 115WD(1) | Rs. 100 for every day of default |
| 271G3 | Failure to furnish any information or document as required by section 92D(3) | 2% of the value of the international transaction/specified domestic transaction for each failure |
| 271H4 | 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 | W.e.f. 1-10-2014 Assessing Officer may direct payment of penalty. Penalty shall not be less than Rs. 10,000 but may extend to Rs. 1,00,000 |
| 272A(1) | Refusal or failure to : | Rs. 10,000 for each failure/default |
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(a) answer questions
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(b) sign statement
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(c) attend to give evidence or produce books of account, etc., in compliance with summons under section 131(1)
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| 272A(2) | Failure to : | |
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(a) furnish requisite information in respect of securities as required under section 94(6) ;
| Rs. 10,000 for each failure/default. (In respect of penalty for failure, in relation to a declarationmentioned in section 197A, a certificate as required by section 203 and returns u/ss 206 and 206C and statements under section 200(3) or proviso to section 206C(3), penalty shall not exceed amount of tax deductible or collectible) |
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(b) give notice of discontinuance of business or profession as required under section 176(3) ;
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(c) furnish in due time returns, statements or certificates, deliver de-claration, allow inspection, etc., under sections 133, 134, 139(4A), 139(4C), 192(2C), 197A, 203, 206, 206C, 206C(1A) and 285B;
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(d) deduct and pay tax under section 226(2)
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(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)
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(f) file the prescribed statement within the time specified in section 206A(1)
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| 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 under sections 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 Principal Commissioner/Commissioner for granting immunity from penalty, if (a) he has made an application for settlement under section 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.
OFFENCES AND PROSECUTIONS
| Section | Nature of default | Punishment (rigorous imprisonment) | Fine |
| (1) | (2) | (3) | (4) |
| 275A | Contravention of order made under section 132(1) (Second Proviso) or 132(3) in case of search and seizure | Up to 2 years | No limit |
| 275B | Failure to afford necessary facility to authorised officer to inspect books of account or other documents as required under section 132(1)(iib) | Up to 2 years | No limit |
| 276 | Removal, concealment, transfer or delivery of property to thwart tax recovery | Up to 2 years | No limit |
| 276A | Failure to comply with provisions of section 178(1) and (3) re : company in liquidation | 6 months to 2 years | — |
| 276AB | Failure to comply with provisions of sections 269UC, 269UE and 269UL re : purchase of properties by Government5 | 6 months to 2 years | No limit |
| 276B | Failure to pay to credit of Central Government (i) tax deducted at source under Chapter XVII-B (non-cognizable offence under section 279A), or (ii) tax payable u/s 115-O(2) or second proviso to section 194B | 3 months to 7 years | No limit |
| 276BB | Failure to pay the tax collected under the provisions of section 206C | 3 months to 7 years | No limit |
| 276C(1) | Wilful attempt to evade tax, penalty or interest (non-cognizable offence under section 279A)— | | |
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(a) where tax sought to be evaded exceeds Rs. 1 lakh (Rs. 25 lakh w.e.f. 1-7-2012)
| 6 months to 7 years | No limit |
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(b) in other cases
| 3 months to 3 years (2 years w.e.f. 1-7-2012) | No limit |
| 276C(2) | Wilful attempt to evade payment of any tax, penalty or interest (non-cognizable offence under section 279A) | 3 months to 3 years (2 years w.e.f. 1-7-2012) | No limit |
| 276CC | Wilful failure to furnish returns of fringe benefits under section 115WD/115WH or return of income under section 139(1) or in response to notice under section 142(1)(i) or section 148 or section 153A (non-cognizable offence under section 279A)— | | |
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(a) where tax sought to be evaded exceeds Rs. 1 lakh (Rs. 25 lakh w.e.f. 1-7-2012)
| 6 months to 7 years | No limit |
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(b) in other cases
| 3 months to 3 years (2 years w.e.f. 1-7-2012) | No limit |
| 276CCC | Wilful failure to furnish in due time return of total income required to be furnished by notice u/s 158BC(a) | 3 months to 3 years | No limit |
| 276D6 | Wilful failure to produce accounts and documents under section 142(1) or to comply with a notice under section 142(2A) | Up to 1 year | 7Rs. 4 to Rs. 10 for every day of default |
| 277 | False statement in verification or delivery of false account, etc. (non-cognizable offence under section 279A) | | |
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(a) where tax sought to be evaded exceeds Rs. 1 lakh (Rs. 25 lakh w.e.f. 1-7-2012)
| 6 months to 7 years | No limit |
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(b) in other cases
| 3 months to 3 years (2 years w.e.f. 1-7-2012) | No limit |
| 277A | Falsification of books of account or document, etc., to enable any other person to evade any tax, penalty or interest chargeable/leviable under the Act | 3 months to 3 years (2 years w.e.f. 1-7-2012) | No limit |
| 278 | Abetment of false return, account, statement or declaration relating to any income or fringe benefits chargeable to tax (non-cognizable offence under section 279A) | | |
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(a) where tax, penalty or interest sought to be evaded exceeds Rs. 1 lakh (Rs. 25 lakh w.e.f. 1-7-2012)
| 6 months to 7 years | No limit |
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(b) in other cases
| 3 months to 3 years (2 years w.e.f. 1-7-2012) | No limit |
| 278A | Second and subsequent offences under section 276B, 276C(1), 276CC, 277 or 278 | 6 months to 7 years | No limit |
| 280(1) | Disclosure of particulars by public servants in contravention of section 138(2) [Prosecution to be instituted with previous sanction of Central Government under section 280(2)] | Up to 6 months (simple/rigorous) | No limit |
Notes :
1. No person is punishable for any failure under section 276A, 276AB or 276B if he proves that there was reasonable cause for such failure (vide section 278AA).
2. (a) Prosecution for offences under section 275A, section 275B, section 276, section 276A, section 276B, section 276BB, section 276C, section 276CC, section 276D, section 277, section 277A and section 278 to be instituted with previous sanction of Principal Director General/Principal Chief Commissioner/Principal Commissioner/Director General/Chief Commissioner/Commissioner, except where prosecution is at the instance of the Commissioner (Appeals) or the appropriate authority (vide section 279).
(b) The offences under Chapter XXII can be compounded (either before or after the institution of proceedings) by Principal Director General/Director General or Principal Chief Commissioner/Chief Commissioner.
3. Where an offence under this Act has been committed by a person, being a company, and the punishment for such offence is imprisonment and fine, then, such company shall be punished with fine and every person, referred to in sub-section (1) of section 278B, or the director, manager, secretary or other officer of the company referred to in sub-section (2) of section 278B shall be liable to be proceeded against and punished in accordance with the provisions of this Act.
4. With effect from 1-4-2008 under section 278AB a person may apply to the Principal Commissioner/Commissioner for granting immunity from prosecution, if he has applied for settlement under section 245C and the proceedings have abated under section 245HA. The application shall not be made after institution of prosecution proceedings after abatement.
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