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Penalties Imposable - Section 270 to 275 under Income Tax Act, 1961

penalty


Introduction -

In our society the structure of the law is for the maintenance of safety and progress of the citizen of our country. The rules and regulations under the tax laws the basic concept is that the taxpayer should pay the taxes correctly. If the assessee fail to pay the tax liability including interest which is fixed but by the assessing authority for the amount will be levied which is called as penalty. Interest and penalty are totally different concepts under the tax laws.
There are the provisions for tax liability and time limit for assessee. In non compliance of the provisions of the Income Tax Act, 1961.

Question : Write a short note on "Penalties".

There are the provisions for penalties under various sections which are explained in the following chart :

Section

Nature Of Default

Minimum Penalty

Maximum Penalty

140(3)

Failure to pay tax on interest on self assessment failure to pay tax or interest on self assessment u/s 140A(1)

Such amount as assessing officer may impose

Tax in arrears

221(1)

Failure to pay tax within prescribed time

Such amount as assessing officer may impose

Tax in arrears

271(1)(b)

Failure to comply with notices u/s 142(1) or section 142(2A) or section 142(2)

Rs. 10,000/- for each default

 -

271(1)©

Concealment of income or furnishing wrong particulars of income

100% of the tax sought to be evaded

300% of the tax sought to be evaded

271(4)

Wrong distribution of profits of a registered firm - penalty on the share of the partner

 Nil

150% of the tax evaded

271A

Failure to keep or maintain books of accounts, documents etc.

 Nil

 -

271AAA

Search initiated on or after 1.6.2007

Rs.25,000/-

 -

271B

Failure to get accounts audited or furnish the audit report as required

1/2% of the gross sales or of receipts

Rs.

1,00,000/-

271BB

Failure to subscribe to eligible issue of capital

 -

20% of the amount not subscribe to eligible issue of capital

271C

Failure to deduct tax at source or to pay the tax

The amount of tax which he failed to deduct or pay

 -

271CA

Failure to collect tax at source

The amount of tax which he failed to collect

 -

271D

Failure to accept loan/ deposite Rs.20,000/- or more without account payee cheque/draft

Equal to the loan/deposite so taken/ accepted

 -

271F

Failure to file return of income u/s 139(1)

Rs.5000/-

 -

271FA

Failure to furnish annual information return

Rs.100/- per day

Rs.100/- per day

271FB

Failure to filr return of fringe benefits

Rs.100/- per day

Rs.100/- per day

272A

i) Failure to answer question sign statements

ii) Failure to allow inspection etc.

Rs.10,000/- for each



Default

Rs.100/- per day

 -

272AA

Failure to help in collecting information

 -

Rs.1000/-

272B

Failure regarding PAN

Rs.10,000/-

 -

272BB

Failure to apply for tax deduction and tax collection account number

Rs.10,000/-

 -

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