The following are the various penalties under the Income Tax Act 1961 along with the corresponding nature of defaults.
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PENALTIES UNDER INCOME TAX ACT
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Section
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Nature of Default
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Quantum of penalty
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NON PAYMENT
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221(1)
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Tax payments including SelfAssessment Tax
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Amount of tax in arrears
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Failure to comply
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271(1)(b)
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with the notice u/S 115WD(2)/ 115WE(2)/ 143(1)/ 142(2)
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Rs. 10,000 of each failure
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271(1)(b)
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with direction u/s 142(2A) to get audited
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Rs. 10,000 of each failure
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272A (1)
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Failure to answer questions or sign statements
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Rs. 10,000 of each failure
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Concealment
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271(1)(c)
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Concealment of income or inaccurate particulars
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100 % to 300 % of tax sought to be evaded
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271AAA
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Undisclosed income found during search intimation u/s 132
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10% of undisclosed income
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Book, Audit ,loans
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271A
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Failure to maintain books or documents u/s. 44AA.
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Rs. 25,000
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271B
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Failure to get accounts audited u/s. 44AB.
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0.5% of total sales, or Rs.1,50,000 whichever is less
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271D
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Taking loan in contravention of Sec. 269SS
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Equal to amount of loan taken
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271E
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Repayment of loan in contravention of Sec. 269T
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Amount of deposit or repaid
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271F
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Failure to furnish Return of Income
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Rs. 5,000
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International transactions
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271AA
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Failure to keep and maintain information and documents u/s. 92D.
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2% of value
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271BA
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Failure to furnish a report as required u/s. 92E.
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Rs. 1,00,000
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TDS
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271C
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Failure to deduct TDS in full and part
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Equal to the amount failed to be deducted
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271CA
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Failure to collect TDS in full and part
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Equal to the amount failed to be collected
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272BB(1A)
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Quoting false TAN in challan/ statements
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Rs. 10,000
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272BB(1)
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Failure to apply for TAN
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Rs. 10,000
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271H
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Failure to furnish e TDSstatement
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Rs 10,000 to 1 lacks
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272A(2) (g)
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Failure to furnish TDS certificate
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Rs 100 per day .
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272A(2)
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Failure to comply with department letter
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Rs. 100 for every day during which the failure continues.
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272AA(1)
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Failure to furnish information required u/s. 133B
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Rs. 1,000
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272B
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Failure to apply for Permanent Account Number (PAN)
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Rs. 10,000
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272BBB
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Failure to apply for Tax CollectionAccount No. (TCN)
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Rs. 10,000
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