A table containing the details of offences and penalties applicable under the provisions of Income Tax Act along with the latest amendment vide Finance Act, 2021 that are applicable for the Assessment Year 2022-23 and further are provided below:
Relevant Section
Default Name
Penalty imposable
Failure in paying partly or wholly
Any such amount as may be imposed by the Assessing Officer but not more than the tax in arrears
(a) self-assessment tax
(b) Fees and interest
(c) both Fees and Interest
While determining block period 's undisclosed income
Minimum : 100 % tax imposed on the income that are not disclosed
Maximum : 300 % tax imposed on the income that are not disclosed
Any such amount as may be imposed by the Assessing Officer but not more than the tax in arrears
When the taxpayer fails to file statement under section 200(3) with regard to section 206C(3)
Rs. 200 for every failure continued but not more than the deducted or collected tax
Default while furnishing returns on income as provided under section 139(1)AB
Rs. 5,000 in case the return is filed after the specified due date under section 139(1). However , if the total income of the individual is not more thanRs. 5 lakhs then late filing charges of Rs. 1,000 will be applicable
Fees deposited as a result of default in statement submission under section 35 as prescribed
Fees deposited in case of default in intimation of Aadhaar Number
Maximum of Rs. 1,000
Mis-reporting or under-reporting of income
A amount equal to 50% of the tax payable on the under reported income.
In case the under report is due to misreporting by a person then the penalty will be 200% equal to the sum payable on under reported income
In case, a person fails to comply with the notice under section 115WD(2)/115WE(2)/ 142(1) or section 143(2) 142(2A)
Rs. 10,000 fixed penalty for each failure.
However, the aforesaid penalty will be imposed related to assessment for assessment years starting on or after 1st April 2017
Distribution of profits by registered firms as mentioned in the partnership deed and due to the same partner has filed return lower than the real income
Not more than 150% of difference between the income of the partner and tax assessed and additional tax payable and tax on the income that are returned
However, the aforesaid penalty will be imposed related to assessment for assessment years starting on or after 1st April 2017
Failing to maintain, keep or retains of documents as needed under section 44AA
Failing to maintain and keep information required under section 92D(1) or 92D(2)
2% of each value in respect of specified domestic transaction as well as international transaction provided
Failing to report of any such transaction
Maintenance or providing incorrect document or information
Failing to furnish documents and information as prescribed under Section 92D(4)
In case there is initiation of search conducted prior to 1 July 2012 and undisclosed income found
10% of income that are not disclosed income
In case there is initiation of search conducted prior to 1 July 2012 and undisclosed income found
(a) 10% of income that are not disclosed as specified in the previous year if admitted by assessee.
Substantiates in the manner that was derived and on or prior to the specified payment of tax. Although the interest whereof furnished income tax return as specified in the previous year with declaration of incomes that are not disclosed earlier
(b) 10% of income that are not disclosed as specified in the previous year if admitted by assessee.
Substantiates in the manner that was derived and on or prior to the specified payment of tax. Although the interest whereof furnished income tax return as specified in the previous year with declaration of incomes that are not disclosed earlier
(c) 60% of income that are not disclosed in the specified previous year in case not covered by above point of (a) and (b)
In case there is initiation of search conducted prior to 15 December 2016 and undisclosed income found
(a) 30% of of income that are not disclosed as specified in the previous year if admitted by assessee.
Substantiates in the manner that was derived and on or prior to the specified payment of tax. Although the interest whereof furnished income tax return as specified in the previous year with declaration of incomes that are not disclosed earlier
(b) 60% of income that are not disclosed as specified in previous year
Determination of Income by Assessing Officer including the income as provided under section 68, 69, 69A, 69B, 69C or 69D for any previous year.
In case the incomes are not included by the assessee in ITR as per the provision of section 115BBE that are not paid
10% of tax payable under section 115BBE
Penalty, in case of any proceeding under the Income Tax Act, it is revealed that the books of accounts are maintained by assesse is of;
100% of any omitted and fake entry
Fails to get the books of account audited under section 44AB
1/2 % of total sales, gross receipt or annual turnover or Rs. 1,50,000, which-ever is less
Fails to provide a report from an accountant as prescribed under section 92E
Fails to subscribe the amount in respect of the units issued under section 88A(1)
20 % of such amount
Fails to deduct TDS wholly or partly under sections 192 to 196D and if fails to pay wholly or partly tax under section 115-O(2) or second provision to section 194B
Sum equal to tax not paid or deducted
Fails collect TCS under Chapter XVII-BB
Sum equal to tax not collected
Accepting loan or deposit or sum specified in contravention of the provision under section 269SS.
“Specified sum” refers to sum of money received whether it may be received in advance related to transfer of a immovable property, it does not matter if the transfer actually made or not
Sum equal to deposit or loan or sum specified or accepted
Receipt of a sum Rs. 2 lakh or more from a person in single day under section 269S
Sum equal to such receipt
Fails to provide facility for acceptance of payment by way of electronic modes of payment as prescribed under section 269SU
Rs. 5,000 rupees for each day of default
Repayment of loan or deposit or sum specified in contravention of the provision under section 269T.
“Specified Advance” refers to sum of money received whether it may be received in advance related to transfer of a immovable property, it does not matter if the transfer actually made or not
Sum equal to deposit or loan or sum specified or accepted
Fails to furnish information annually as prescribed under section 285BA(1)
Rs. 500 per day of default
Furnishing of incorrect or inaccurate information in the financial statement or reportable account
Failure to furnish information in the annual return within specified in notice under section 285BA(5)
Rs. 1,000 per day of default
Section 9A deals with the management of funds carried out by a eligible offshore fund investment by an eligible fund manager working on behalf of aforesaid fund will not constitute business transaction in India provided certain conditions gets fulfilled.
The provision needs that the investment fund will be furnished within a period of 90 days at the end of a financial year in respect of its business activity
In the prescribed format containing the details related to the fulfillment of the specified criteria and any documents or information as prescribed. Penalty will be imposed in case of failure of investment fund comply with the requirement.
Fails to furnish any document or information as needed by section 92D(3)
2% of the international transaction value
And certain domestic transaction for each failure
