Penalties we various defaults in respect of which penalty can be im; posed are summarised in # chart below: a Penalty Default Nature of Default Minimum Maximum |No Penalty |Person who| jo.| section | under Penalty penalty for \can impose’ | section reasonable! penalty cause i.e. whether section 273B or uls 221(1) applicable or not 1 2 3 4 5 6 7 8 1 (2) /140A(3) Failure to pay the [Such amount [Amount of tax| Yes [Assessing whole or any part of Jas Assessing Jin arrears [Second _ Officer self assessment tax Officer may proviso to (which also includes impose for section fringe benefit tax) or |default or 221(1)] interest or both in continuing accordance with the {default provisions of section bl 140A(1) * a1) 22001) | Faiture in making the |Such amount [Amount of tax | Yes Assessing payment of tax, as Assessing |in arrears [Second | Officer interest or any Officer may Proviso to demand within the impose for section prescribed time-limit. |default or 221(1)] (Penalty is imposable |continuing even though the tax default has been paid before the levy of such | penalty is made)404 Corporate Tax Planning & Management Chap, 25 i 2 3 4 5 z 8 3. [2711))_[SWDQ), [Failure to comply ees Assessing TISWE 2)| with annotice under — |p ed at £10,000! for each Officer lor 142(1), {section 11SWD(2) oF |raiture 1432), | ISWE(2) of 142(1) 142@A)__ [or 143(2) or failure to comply with a direction regarding getting of accounts audited u/s 142(2A) 4 2710 © Concealment of 100%? of the 300%" of the [No Assessing particulars of income Jamount of tax amount of tax Officer, lor furnishing sought to be [sought to be cr inaccurate particulars evaded levaded (Appealy lof such income cr 5. pnD@ Concealment of 100%! of the |300%5 of the |No —do— |particulars of the lamount of tax |amount of tax fringe benefits or sought tobe _ {sought to be furnishing inaccurate evaded levaded particulars of such fringe benefits 6 [271A [44AA __|Failure to keep, Yes Assessing maintain or retain I Fixed at 225,000 Officer/ books of account, cr Jdocuments, etc. as (Appeal) required under section 44AA and rules thereunder 7. [271AA (92D Failure tokeep and [2% ofthe [Same as Yes to maintain any such —_|value of each_|minimum. information and —_|inter-national document as required |transaction junder section 92D(1) & (2) in relation to international transaction (Not lapplicable on or after 1.72012) |A new section 271AA |2% of the _|Same as Yes —do— lenlarging the scope of |value of each_|minimum Ipenalty has been international inserted by the {transaction or Finance Act, 2012, specified wef. 1.7.2012 (See |domestic section at the end of transaction this table) 8. [271AAA income foundin [10% of the |Same as No Assessing course of search underlundisclosed minimum. lOfticer section 132 which is Inot recorded on or before the date of search in books of faccount or other jincomePenalties and Pp, TOsecutions 0 ecutions 405 cha: ii 5 G i tA ems aintained| —————} L in the normal course or otherwise not disclosed to CCIT or CIT. (Not applicable for search on or after 1.7.2012. For search initiated on or after 1,7.2012 a new section 271 AAB has been inserted. See at the end of this table) KB 44AB Failure to get 0.5% of total 18150,000 [Yee |Assessing 2 accounts audited or to |sales, turnover wae, |Officer furnish a report of or gross 1-04-2011 such audit as required freceipts, as the u/s 4AB [case may be. L— 9B Failure to furnish Yes [Assessing 10, [271BA report from an Fixed 100,000 Officer ‘accountant as required font lunder section 92E i Joint [Chapter |(a) Failure to deduct {Amount equal [Same as [Yee Hpac ive. |the whole or any part |to tax which minimum Comm- provisions Jof tax as required [has not been issioner lof TDS _|under Chapter XVIB. |deducted. (6) Failure to pay the [Amount equal [Same as [Yes whole or any part of |to tax which [minimum the corporate dividend|has not been tax as required u/s paid 115-0! or 194B iso? (Second Proviso?) : 7 J [Sameas [Yes Hoint 12, [271CA [Chapter [Failure to collect the mound eal Sime comm: ACVIBB | whole or any par of, fe i eRe issioner ie. tnx as required under, fas na provisions |Chapter XVIBB collected. lof TCS ¥ oint Any loan or deposit. JAmount equal | —do— /¥es—Hoint 3271p {269ss y i: [te tbe loan oF Cor taken or accepted in sit taken jissioner [contravention of eros ff section 2698S _ aioee erat hacaeailic Toat Marie [a6eT [Any loan or deposit it i Comm " which is repaid in hich is re- issioner contravention of | whi section 2697 F Yes [Assessing Failure to furnish a Officer 1S. pF [139(0) umn af indome #8 Fixed at 25,000 i tion required by sect 139(1) before the end of the relevant assessment Yeo "2100 for every |Same as Yes Prescribed Failure to furnish iay during (minimum income-tax 16 b71RA |285BA(1) Statement of rans ay durin authority tion Fi Reportable ‘Account [failureChap, 20 Corporate Tax Planning & Management ’ a 3 é s | > raat information eontinues return up to A: 014-15) as required funder section 385BA(0) within time prescribed under erction 285BA(2)__|_____— 7 - Fi Proviso [285BAG) [Failure wo furish Zao foreveryfsamees YS Prescribe section Fa or Fnancal day ding jn incometax DTA STransactionor {which the eunhorty Reportable Account failure Kerrual information feontinves return upto AY. lao14-15) within the period specified inthe Intice issued under ection 285BA(3) Te TIFAA [285BA(1) [Furnishing inacourst” ¢5,000 [Same as No eo (dp ie, [statement of financial inion [default transaction oF [committed [reportable account by the prescribed reporting Financial instittion 20G) — [Fstrero furnish fH ofthe POO FYes [Assessing Tormation or value ofthe jrminimum lotticer/Co Mdocument as required [interational nm lus 92D) transaction or ssioner specified Appeals) domestic transaction for leach such failure Ti fait [200 [fallretedetivera [810.000 71,00,000 [Yes [Assessing Proviso to [statement within the Officer section [prescribed time 206C3) 2, [RAGe) (a) Being legally No Where leo pounds sae the Fixed at £10,000 for each such] failure or truth of any matter [default fault in touching the subject respect of fr asesimen es which such question or ee (b) refuses to sign any lerpogtble statement demanded (Pama by the ineome-tax eee authority. chee, proceeding before an income-tax authority not lowerPenalties and Prosecutions 407 4 7 & in rank than a Joint Director Jor a Joint Commis ner, by such jincome-tax authority. In any lother case ley Joint Director! Lint (Commissio ist comply a with the summons ae issued uls 13101) as oleae ane attend or to produce books or documents at a certain place and time. Failure to comply [100 for every [100 for every —do— with a notice issued day during |day during lu/s 94(6) regarding |whicheach | which each furnishing of Isuch failure |such failure information of continues. continues. securities, etc. Failure to give notice [100 for every |®100 for every ao lof discontinuance of day during |day during business or profession |which each which each u/s 1763) such failure such failure lcontinues. __|continues. Failure to furnish in [€100 for every |For default ws [Where Idue time any of the [day during |206 & 206C failure or returns, statements or |which each — {penalty cannot default in particulars mentioned |such failure Jexceed the respect of fn sections 133, 206, continues. amount of tax which such '206C or 2858 deductible or penalty is collectible, as iimposable the case may loceurs in lbe the course lof any proceeding before an jincome-tax authority Inot lower in rank than a Joint Director lora Joint |Commissio ner, by such income-tax authority. In any134 ure to allow aspen cof any (42 UT register ofthe which eact ee ee orion 134 ioallow eontinues: [copies of such 139(4A) No filing ofreturn of | CO income u/s 139(4A) i.e. return of trust et6- or delay in filing of the said retum of i] [¢100 for every Yes. peste }—ao— [Same as {minimum Yes 139(4C) income (or ws 13940) de. eum of certain funds institutions co junder various clauses fYes to of section 10) 197A, Failure wo deliver or | | —d0—~ cause to be delivered in due time a copy of the declaration mentioned in section 197A lcollectible [Cannot exceed |Yes tax deductible! (Chiet \Comm- issioner or \Commissio| Incr 1203, 206C [Failure to furnish a [8100 for every’ certificate of| day during IrDSjcollection at__|which each source u/s 203 or u/s |such failure '206C, as the ease may continues. Ibe as minimum ICannot exceed| Yes tax deductible. [For certificate lof TCS same [Same as given under section 272.A(1) & (2), 226(2) Failure to deduct and | —do— pay tax as required by section 226(2) [Same as minimum Yes 19220) [Failure to furnish —do— statement as required lunder section 192(2C)) =e Yes O6CUIB) [Failure to deliver or | —do— [cause to be delivered lin due time @ copy of, the declaration leferred in section !206C(1A) ‘Same as {minimum Yes ao [2003) }206c(3) Proviso to [cause to be delivered Failure to deliver or) —do— copy of the statement within prescribed time in respect of |deduction/collection of tax at source, (Not ‘applicable w.e.f. 17.2012. In lew of this late fee of £200 collectible [Cannot exceed Yes tax deductible/| —do— > ag afPenalties and Prosecutions 409 per day u/s 2345 ang [penalty under section 271H shall be leviable. See section [271H after the end of this table) 5 206A(1) Failure on the part of co-operative society, etc. to deliver or cause to be delivered statement in respect lof payment of interest to resident without {deduction of tax on or after 1.4.2005 1338 —to— [Same as minimum [Failure to comply with the provisions of las the income. section 133B, regarding the powers of collecting certain information from the place of business or profession, ‘Such amount tax authority Imay direct. 1,000) iYes. ro |Comm- issoner | Additional |Director/ Deputy (Director! |Assessing Officer 139A to PAN Failure to comply \with provisions of section 139A relating Fixed at 710,000 Yes [Assessing Officer 1BIAGVE), 13945) be true (@) Failure to quote PAN in any document} referred to in section 139A(5)(c) or (6) Failure to intimate PAN as required by section 139A(5A) or (©) To quote or intimate PAN which is false and which he either knows or Ibelieves to be false or ldoes not believe it to Fixed at 710,000 Yes. [Assessing Officer [203 Where a person has ifailed to get tax |deduction account number (tax |deduction and |collection account number wef. 110.2004) or to quote such number in [challans, certificates, returns, etc. Fixed at £10,000 Yes Assessing [Officer [203A(2) Failure to quote [TDAN/TCAN/ TDCAN in the challans, certificates, statements, etc. Fixed at 210,000 Yes Assessing Officer410 Corporate Tax Planning & Management q : 2 3 Z a hay 29. |272BBB |206CA [Failure to comply Fixed at 710,000 before 1.10.2004 with provisions of section 206C relating to | obtaining and quoting | TCAN