2. Penal provisions
Sec.221:Penalty payable when tax in
default.
When the assessee is in default in
payment of tax, he shall be liable to
penalty as the A.O. may from time to
time direct to pay but total penalty not
to exceed the amount of tax in arrears.
Reasonable opportunity must be given.
No penalty for good and sufficient
reasons.
3. Penal provisions
Expl. The assessee shall not cease to be
liable for penalty merely for reason that
he paid the tax before levy of penalty.
Where the tax, in respect of which
penalty was levied, is wholly reduced,
penalty levied shall be cancelled and the
amount of penalty paid shall be refunded.
4. Penal provisions
Sec.271(1)(b): Failure to comply with
notices u/s 142(1) 142(2A) 143(2).
If any person fails to comply with notices
u/s 142(1) or 143(2) or with a direction
u/s 142(2A) ,he shall be liable to pay
penalty of Rs. 10000 for each failure.
5. Penal provisions
Sec.271A: Failure to keep or maintain
books of a/cs.
If any person fails to keep or maintain
books of a/cs and other documents as
required by sec. 44AA, then a penalty
of Rs. 25000 is leviable.
6. Penal provisions
Sec.271B: Failure to get accounts
audited.
If any person fails to get his accounts
audited u/s.44AB or fails to furnish such
audit report within the due date, penalty
will be imposable @ ½% of turnover or
Rs.1 lakh, whichever is less.
(Rs. 1.50 lakh from 01.04.2011)
7. Penal provisions
Sec.271C: Penalty for failure to deduct
tax at Source.
• If any person fails to make TDS or fails
to pay whole or any part of tax as
required by sec. 115-O (2) or sec. 194B
2nd prov. penalty equal to the amount
of such tax not paid, will be leviable.
• Such penalty to be imposed by JCIT.
8. Penal provisions
Sec.271CA: Penalty for failure to collect
tax at source [w.e.f. A.Y.2007-08].
If any person fails to collect whole or
any part of tax collectible, penalty
equal to the amount of such tax which
he failed to collect will be leviable.
Such penalty to be imposed by JCIT.
9. Penal provisions
Sec.271D: Failure to comply with the
provisions of sec. 269SS.
If a person accepts loan or deposit in
contravension of sec. 269SS, penalty
equal to such loan or deposit is
leviable.
Such penalty to be imposed by JCIT.
10. Penal provisions
Sec.271E: Penalty for failure to comply
with the provisions of sec. 269T.
If a person repays any loan or deposit in
contravension of sec. 269T, penalty
equal to amount of repayment of such
loan or deposit is leviable.
Such penalty to be levied by JCIT.
11. Penal provisions
Sec.271F: Failure to furnish return of
income.
If any person fails to furnish a return
of income before the expiry of
relevant A.Y. then penalty of
Rs.5000/- is leviable.
12. Penal provisions
Sec.271FA: Penalty for failure to furnish
AIR.
If a person fails to furnish AIR as required
u/s.285BA, then penalty will be leviable @
Rs.100 per day of default.
13. Penal provisions
Sec.272A(1): Penalty for failure to answer
questions, sign statements etc.
If a person refuses to answer questions
or to sign any statement or to attend or
refuses to produce books of a/c or any
document he shall be penalised for a
sum of Rs. 10000 for each such failure.
14. Penal provisions
Sec.272A(2):Penalty for other failures.
If a person commits defaults as per
sec. 272A(2), he shall pay penalty of
Rs100/- for each day of default.
However, penalty for failures
u/s.197A, 203, 206, 206C not to exceed
the amount of such TDS or TCS.
15. Penal provisions
Sec.272A(2):Penalty for other failures.
Penalty to be imposed by officer not
below the rank of JCIT.
In case of failure as mentioned in
sec. 272A(2)(f), by CCIT/CIT.
16. Penal provisions
Sec.272B: Penalty for failure to comply
with the provisions of sec. 139A.
If a person fails to comply with the
provisions of sec. 139A, a penalty of
Rs.10,000/- is leviable.
If a person fails to quote his PAN, or
quotes a wrong PAN a penalty of
Rs.10,000/- is leviable.
17. Penal provisions
Sec.272BB: Failure to comply with
the provisions of sec.203A.
If a person fails to comply with the
provisions of sec. 203A, a penalty of
Rs.10,000/- is leviable.
If a person fails to quote his TDAN or
TCAN or TD & CAN in the challans
statements, certificates or misquotes
such number, then a penalty of
Rs.10,000/- is leviable.
18. Penal provisions
Sec.273A(1) : Power to reduce or waive penalty.
CIT may reduce or waive penalty u/s 271(1)(c),
if he is satisfied that prior to the detection of
concealment by A.O.
the assessee has, voluntarily and in good
faith made full and true disclosure of all
particulars of income,
Cooperated in enquiry relating to the
assessment and recovery of tax,
Paid the tax or interest.
19. Penal provisions
Where total amount of penalty exceeds Rs.
5 lakh for one A.Y. or more than one A.Y. ,
the CIT is to take prior approval of CCIT or
DGIT. Sec.273A(2).
Where the assessee availed of such relief
once, he shall not again be entitled to such
relief later. Sec.273A(3)
Every order under this section shall be final
and can not be questioned by any court or
other authority. Sec. 273A(5)
20. Penal provisions
Sec.273A(4): Power to reduce or waive penalty.
CIT may reduce or waive any other penalty if
he is satisfied that the assessee
Co-operated in enquiry relating to the
assessment and recovery of tax,
On the ground of genuine hardship,
Where total amount of penalty exceeds Rs. 1
lakh for one A.Y. or more than one A.Y. , the
CIT is to take prior approval of CCIT or DGIT.
Every order under this section shall be final
and can not be questioned by any court or
other authority. Sec. 273A(5).
21. Penal provisions
Sec.273AA : Immunity from penalty.
A person may apply to the CIT for granting
immunity from penalty if he has applied to
the ITSC u/s 245C and the proceedings have
been abated u/s 245HA. The penalty
proceeding has been initiated u/s 271(1)(c)
and is pending.
22. Penal provisions
The CIT may, subject to such conditions as he
may impose, grant immunity if he is satisfied
that he cooperated with the deptt. and made
true and full disclosure.
Immunity may be withdrawn if he fails to
comply with the conditions.
23. Penal provisions
Sec.274- Procedure
No order imposing penalty under this
chapter shall be made-
(a) by the ITO, where the penalty exceeds
Rs. 10000.
(b) By the ACIT or DCIT, where the penalty
exceeds Rs. 20000.
except with the previous approval of JCIT.
Any authority, other than the A.O. , passing
any penalty order, must send a copy of the
order to the A.O. Sec.274(3).
