Other penalties.bose

Other Penalties

Shankar Bose, IITMSTU, Puri

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.

Penal provisions 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.


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.


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.


Sec.271B: Failure to get accounts audited.

If any person fails to get his accountsaudited u/s.44AB or fails to furnish suchaudit report within the due date, penaltywill be imposable @ ½% of turnover orRs.1 lakh, whichever is less. (Rs. 1.50 lakh from 01.04.2011)


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.


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.


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.


Sec.271E: Penalty for failure to comply with the provisions of sec. 269T.

If a person repays any loan or deposit incontravension of sec. 269T, penaltyequal to amount of repayment of suchloan or deposit is leviable.

Such penalty to be levied by JCIT.


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.


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.


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.


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.


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.


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.


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.


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.


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)


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).


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.


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.


Sec.274- ProcedureNo order imposing penalty under thischapter 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. , passingany penalty order, must send a copy of theorder to the A.O. Sec.274(3).


Other penalties.bose

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