Non-ap plicabi lity of Provisi ons of this Act relatin g to jurisdi ction and proced ure

for imposi ng penalt y [Sectio n 274(2B )] [Insert ed by the Financ e Act, 2020]
The Central Governm ent may, for the purpose s of giving effect to the scheme made under sub-
section (2A), by notificat ion in the Official Gazette, direct that any of the provisio ns of this Act
relating to jurisdict ion and procedu re for imposin g penalty shall not apply or shall apply with such
exceptio ns, modific ations and ·adaptati ons as may be specified in the notificat ion. Howeve r, no
direction shall be issued after the 31st day of March, 2022.
Time limits of commen cement and complet ion of penalty proceed ings (Section 275). This
section prescrib es time limits both for commen cement and for complet ion of penalty proceed ings. No
order imposin g a penalty under this chapter shall be passed :
(a) In a case where the relevant assessm ent or order is the subject- matter of an appeal to the
Commis sioner (Appeal s) under Section 246 or an appeal to the Appella te Tribuna l under Section 253
after the expiry of the financia l year in which the proceed ings, in the course of which action for the
impositi on of penalty been initiated , are _c omplete d or six months from the end of the month in which
the order of the Commis sioner (Appeal s) or as the case may be, the Appella te Tribuna l is received by
the Chief Commis sioner or the Commis sioner whichev er period expires later.
In a case. where the relevant assessm ent or other order is the subject matter of an appeal to the
Commis sioner (Appeal s) under section 246 or section 246A, and the Commis sioner (Appeal s) passes
the order on or after the 1st day of June 2003 disposin g of such appeal, an order imposin g penalty
shall be passed before the expiry of the financia l year in which the proceed ings, in the course of
which action for imposit ion of penalty has been initiated , are complet ed, or within one year from the
end of the financia l year in which the order of the Commis sioner (Appeal s) is received by the Chief
Commis sioner or Commis sioner, whichev er is later.
SUMM ARY OF PROVI SIONS RELATING TO PENAL TIES
-
-
St. No.
-
Section Offence ,, ;·
Penalty ~- . .
i l,·
-- - ---

Failure to pay tax: .

0

1. 221 (t) Maximu n u.pto tax due

.

~ 210A FOf under-re porting and misreporting of Under..reporting of income- -50% of tax
- income Miswreporting of inc:ome -200% of tax

lt:n
 Page: 8.14 , Pe,n~ltfes 'and Pr~~ec~tJon

3. 271A "25,000
-
Failure to keep maintain or
retain books of accounts u/s 44AA
4. 271AA Ma'i ntain information and documents "25,000
-
about international trans~ction
5. - _271AAB. Where·search has bee11 conducted on or (i) 10% of admitted undisclosed
after 1-7-2012 income
. . (ii) 20% of not admitted undisclosed
' (iii) 60% in othef cases.
. 6. -271AAC . · · · Certain Deemed incomes if determined 10%, of tax payable u/ s 115BBE
- by Assessing Officer
7. 271AAD False or omitted entries found in books · Penally equal to the aggregate amount
of accounts of such false or omitted .entry.
·s. 271 B Failure to get accounts audited 1/2% of total sales; tt.u':ti.over or gross
receipts of business or ··gross receipts. of
..
profession, subjec:t _to maximum of
.,
f 1,50,000
..
9. 271 BA Report u/ s 92E t 1,00,000

..
10. 271BB _ For failure to subscribe for -eligible issue . 20% of:such a.mount
,
of capital ' 4'-
.,_ ·'
.
11. 271 <: -' _Failure to deduct.tax -at source ·- ;penalty of ·a sum equal tQ amount of tax
' . ., i-h;,
pot deducted
,'.,./ j,
·-- ---
:
12. 271CA Failure to collect tax at source 100% of a.mount oL tax which a person
."
,,, has failed to coUe~t. .: - .. ', -::::5-c-':',~~; ~
'·
. 13.- 27ltL _ -Accepting deposit~ exceeding t 20,000 _P enalty equal to amount .of, dep,osit or
... . : in cash u/s 169SS . ·,.. loan accepted
..
. -1-4. 271l?A : For -default in ~qmpliance of · the Penality_of a ,sutn equal to the amountof' .
provisions of Section 269ST . such receipt - '-.·;:'

15. 271DB For failure to comply with the provision ~ 5,000per day during which the-default
of section 269 SU continues
'
16. 271:E Payment of .deposits _or loan exceeding Penalty equal to amount of deposit or
t 20,000 in cash u/s 269T loan repaid .,
17. 271FA (i) Penalty for not filing statement ~ 500 ·per day dw:ing whid1 the fault
within due date continues .
(ii) Penalty for not filing statement f 1,000 per day during which the fault
within time limit given in the notice continues
u/ s 285BA(5)
18. 271 FAA For furnishing inaccurate statement of f 50,000
. financial transaction or reportable
.. account
19. 271FAB For failure to furnish statement or f 5,00,000
information or document by an eligible
investment fund
20. 271 FB For failure to furnish rett.u':ti. of fringe , 100 per day of default.
benefits · -
.21. 271G Information about international transac~ 2% of value of such transaction
tion u/s 92D
22. 271 GA For failure to furnish information or t 5,00,000
document ·u /s 285A -
~,
l
I .
penattles and Pro sec utio n Page : 8.15
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23. 271GB ~or failu re to furni sh repo rt or furni sh ~ 5,000 tot 50,000.
macc urate repo rt u/s 286
1

e----
24. 271H Failu re to furni sh TDS /TCS State men ts/ ·. ~ 10,000 to~ 1,00,000.
furni shing incor rect state ment s
.-- 271-1 For failu re to furni sh infor mati on or f 1,00,000
25,
furni shing inacc urate · infor mati on u/s
195
ever y such repo rt
26. 271J For furni shing incor rect infor mati on in A sum off 10,000 for
repo rts or certificates than or certificate
unt not less ~ 10,000
27. 271(K) Failu re to subm it presc ribed State ment s Pena lty of an amo
etc. by speci fied instit ution s but whic h may exten d to~ 1,00,000.
lt
28. 272 A(l) Failu re to. answ er ques tions or sign f 10,000 for each such defau
stat~ ment s
per day of defa ult
29. 272 A(2) . Failu re to comp ly with notices serve d Pena lty of~ 500
u/s 94(6), 176(3) or failure to subm it
state ment or retur n u/s 133, 206, 206A,
206 206C or u/s 285B, u/s 139 (4A), u/s
197A, 203 u / s
non- comp lianc e. is ~1,000.
30. 272A A Failu re to comp ly with prov ision oi Pena lty for
secti on 133B
lty oft 10,000 for each such .d efaul t .
31. 272B Failu re to comp ly with the _prov ision s of Pena
secti on 139A i.e. PAN C
•. ...
to comp ly· with 203A -tax Pena lty of~ 10,000
32. 272B B Failu re
dedu ction acco unt num ber
or Pena lty of~ 10,000
33. 272BB(1A) · Failu re to quot e tax dedu ction
.. colle ction·num ber
of~ 10,000
34. 272BBl3 Failfile to comp ly with the provisions of Pena lty
•. secti on 206CA i.e. Tax colle ction: acco unt
num ber
esse d simp ly as belo w :
Abo ve-m entio ned leg al lang uage can be expr
se
of com pletion of the proc eedi ngs, in the cour
Afte r the expi ry of two · year s from the date whic h
or six mon ths from the end of the mon th in
whe reof the pena lty proc eedi ngs were initi ated, later no
by the C omm issio ner, whic h peri od expi res
the orde r of the App ellat e Trib unal is rece ived
orde r impo sing a pena lty can be pass ed :
h the
s from the end of the finan cial year in whic
(b) in any othe r case after the expi ry of 2 year plete d.
impo sitio n of pena lty has been initi ated, are com
proc eedi ngs, in the cour se of whic h actio n for
the follo wing peri od shal l be excl uded :
Whi le calcu latin g the abov e perio ds of limit ation
(i) The time take n in givin g an oppo rtun ity
to the asse ssee to be hear d unde r Sect ion 129;
; and
(ii) Any perio d duri ng whic h the imm unit y
gran ted unde r Sect ion 145 H rema ined in force
stay ed
(iii) Any peri od duri ng whic h proc eedi ngs
unde r this chap ter for the levy of pena lty are
by an orde r or injun ction of any cour t.
p1u.:>C \..U.U.V.ll U..llUC_.L uu::, LHctpleL

SUMMARY OF PROVISIO NS RELATING TO PROSECUT IONS

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~ection Nature 0 .,. ,

275A For removing any asset;_ books .-- of ' Imprisonmen t upto 2 years and fine.
accounts, documents etc. found du.riftg -
search m contraventio n of order .
· served· ... ..
:, .,
~

under sec 132(3). , .,. ,.

"*
.,
-~- _,

275B Failure to afford facility_ 'to inspect l5ooks!C- of _,Rigorous impriso~en t upto 2 years and fine.
accounts/ documents maintained electro-
nically as per Sec. 132(1)(ilb).
276 For removal, concealment, transfer or Imprisonmen t upto 2 years and fine.
delivery of property to avoid tax recovery.
276A For default on the part of liquidator. Imprisonmen t of 6 months to 2 years.
276B For failure to pay the tax deducted at Imprisonmen t of 3 months to 7 years and fine.
source.
2768B For failure to pay the tax collected at hnpri~onmen t of 3 months to 7 years and fine.
source.
276C(l) For wilful attempt to evade tax, penalty, If tax evaded exceeds t 25 lacs fine and
,,
interest etc. imprisonmen t of 6 months to 7 years;
Otherwise fine and imprisonmen t of 3 months
to 2 years.
For failure to furnish Return of Income. If tax evaded exceeds t 25 lacs fine and
Z76CC
imprisonmen t of 6 months to 7 years '
.
Otherwis~ fine and imprisonmen t of 3 ~9nths
to 2 years. .. '

276D For failure to produce accounts and

Imprisonment upto one year and fine 4 'to._\ r.
documents.
.,•
, 10 for every day of default. ~ t ·~~
/ ";.;. t ~ ,•:,:{.:
Page : 8.22 Penalties and S?rosecution
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277 For false statement of verification. If tax evaded exceeds , 25 lacs fine and
imprisonment of 6 months to 7 years ;
Otherwise fine and Imprisonment of 3 months
to 2 years.
277 A Falsification of books of accounts or Rigorous imprisonment and fine. ·
documents etc.
278 For abetment in false return. If tax evaded exceeds f 25 lacs fine and
Imprisontnent of 6 months to 7 years;
Otherwise fine and Imprisonment of 3 months
to 2 years. ,
278A For punishment of second and subsequent Fine and Imprisonment of 6 ~onths to 7 years
offences. for every offence. ~-- ,
280(1) Disclosure of information by public servants Upto 6_months and fine. / , '""Y-' ,
in <:ontravention of Sec. 138(2).
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