Income Tax Penalty

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

under sec­tion 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 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 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

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) Fail­ure to report such transaction

(3) Main­tain­ing or fur­nish­ing incorrect

infor­ma­tion or document

2% of val­ue of each inter­na­tion­al transaction/or spec­i­fied domes­tic trans­ac­tion 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

after 1–7‑2012 and undis­closed income


(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


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(See Note1) Fail­ure to fur­nish an annu­al information

return as required under section

285BA(1) (see Note 2)

Fail­ure to fur­nish annu­al information

return with­in the peri­od spec­i­fied in notice

u/s 285BA

Rs. 100 per day of default

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
271G (See note3) 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

271H (See note 4) 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 :

(a) answer questions

(b) sign statement

(c) attend to give evi­dence or produce

books of account, etc., in com­pli­ance with sum­mons under sec­tion 131(1)

Rs. 10,000 for each failure/default
272A(2) Fail­ure to :

(a)    fur­nish req­ui­site infor­ma­tion in respect of secu­ri­ties as required under sec­tion 94(6)

(b)    give notice of dis­con­tin­u­ance of

busi­ness or pro­fes­sion as required under sec­tion 176(3)

(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;

(d) deduct and pay tax under section


(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/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)

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.

  1. With effect from assess­ment year 2015–16 “annu­al infor­ma­tion return” has been changed to “state­ment of finan­cial trans­ac­tion or reportable account” and word “return” has been changed to “state­ment”.
  2. With effect from assess­ment year 2015–16 a new sec­tion 271FAA has been insert­ed to pro­vide for a penal­ty of Rs. 50,000 for fur­nish­ing inac­cu­rate state­ment of finan­cial trans­ac­tion or reportable account in cer­tain cases.
  3. With effect from 1-10-2014 TPO can also levy penalty.
  4. Sec­tion 271H as amend­ed with effect from 1-10-2014 pro­vides that penal­ty shall be levied by Assess­ing Officer.

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