Penalties under the Income Tax Act

There are different penalties leviable under the Indian Income Tax Act for defaults under the various provisions of the act committed by an assessee. There are many provisions under which the penalties are leviable under the act. There are some penalties that are mandatory in nature while in most of the cases penalty is leviable at the discretion of the Assessing Officer (AO). The major penalties that are imposed under the act along with their nature of defaults are given as under:

1.  Default: Concealment of Income or furnishing inaccurate particulars of income.

     Minimum Penalty: 100% of tax sought to be evaded.

     Maximum Penalty: 300% of tax sought to be evaded.

 2. Default: Failure to keep or maintain books as required u/s 44AA.

      Minimum Penalty: Rs. 25,000/-

 3. Default: Failure to get accounts audited or furnish report u/s 44AB.

      Minimum Penalty: ½% of the total sales, turnover or gross receipts.

      Maximum Penalty: Rs. 100,000/-

 4.  Default: Taking/Repaying or accepting any loan or deposit in contravention of the provisions of section  269SS /269T  (Loan taken or repaid above Rs. 20,000 in cash).

      Minimum Penalty: Amount of loan/deposit so taken or accepted or repaid. 

5. Default: Failure to furnish Return of Income.

     Minimum Penalty: Rs. 5000/-


2 Responses to “Penalties under the Income Tax Act”

  1. satsh Says:

    sir i want pay first time from 2007-2008 t0 2009-2010
    my income 2007-2008 is 200000 from other soure
    150000 from agricultur
    2008-2009 250000 from other income
    150000 from agriculture
    tel me what is penalties how much tax

    • Viviek Says:

      For filing 2007-2008 return a penalty of Rs. 5000/- may be levied. But for 2008-09 no penalty will be levied. Please consult your tax adviser for detail.

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