1. Comment on the hierarchy of the Income Tax Authorities.

Also comment on the

duties, powers and jurisdictions of Income Tax Authorities.
Ans.

 Principal Chief Commissioner of Income Tax or Principal Director General of Income

Tax
 Chief Commissioner of Income Tax or Director General of Income Tax
 Principal Commissioner of Income Tax or ADG/Principal Director of Income Tax
 Commissioner of Income Tax or Additional Director General/Director of Income Tax
 Additional Commissioners of Income Tax or Additional Director of Income Tax
 Joint Commissioner of Income Tax or Joint Director of Income Tax
 Deputy Commissioner of Income Tax or Deputy Director of Income Tax
 Assistant Commissioner of Income Tax or Assistant Director of Income Tax

VARIOUS TAX AUTHORITIES UNDER THE INCOME TAX:

The Government of India has constituted a number of authorities to execute the Income Tax
Act and to control the Income Tax Department efficiently. There shall be the following
classes of income-tax authorities for the purposes of the Act as given under Section 116,
namely:
 The Central Board of Direct Taxes constituted under the Central Boards of Revenue
Act, 1963 (54 of 1963),
 Directors-General of Income-tax or Chief Commissioners of Income-tax,
 Directors of Income-tax or Commissioners of Income-tax or Commissioners of
Income-tax (Appeals),
 Additional Directors of Income-tax or Additional Commissioners of Income-tax or
Additional Commissioners of Income-tax (Appeals),
 Joint Directors of Income-tax or Joint Commissioners of Income-tax.
 Deputy Directors of Income-tax or Deputy Commissioners of Income-tax or Deputy
Commissioners of Income-tax (Appeals),
 Assistant Directors of Income-tax or Assistant Commissioners of Income-tax,
 Income-tax Officers,
 Tax Recovery Officers,
 Inspectors of Income-tax.
 In this connection, it may be noted that under section 2(7A), the term ‘Assessing
Officer’ means –

(a) The Assistant Commissioner or Deputy Commissioner or Assistant Director or Deputy

Director; or
(b) The Income-tax Officer who is vested with the relevant jurisdiction by virtue of directions
or orders issued under section 120(1) or (2) or any other provision of the Act; and
(c) The Additional Commissioner or Additional Director or Joint Commissioner or Joint
Director who is directed under section 120(4)(b) to exercise or perform all or any of the
powers and functions conferred on, or assigned to, an Assessing Officer.
Income Tax Authorities
Income tax authority [Explanation (a) to section 133A]:

"Income-tax authority" means a Commissioner, a Joint Commissioner, a Director, a Joint

Director, an Assistant Director or a Deputy Director or an Assessing Officer, or a Tax
Recovery Officer, and for the purposes of clause (i) of subsection (1), clause (i) of sub-
section (3) and sub-section (5), includes an Inspector of Income-tax.
1.1.  Various Authorities

Section  of the Income Tax Act, 1961 provides for the administrative and judicial authorities
for administration of this Act. The Direct Tax Laws Act, 1987 has brought far-reaching
changes in the organizational structure. The implementation of the Act lies in the hands of
these authorities. The change in designation of certain authorities and creation of certain new
posts in the structure are the main features of amendments made by The Direct Tax Laws
Act, 1987. The new features of authorities has been properly depicted in a chart on the facing
page. These authorities have been grouped into two main wings :
(i)   Administrative [ Income Tax Authorities ][ Sec. 116 ]

a. the Central Board of Direct Taxes constituted under the Central Boards of Revenue
Act, 1963 (54 of 1963),
b. Directors-General of Income-tax or Chief Commissioners of Income-tax,
c. Directors of Income-tax or Commissioners of Income-tax or Commissioners of
Income-tax (Appeals),
1. (cc) Additional Directors of Income-tax or Additional Commissioners of
Income-tax or Additional Commissioners of Income-tax (Appeals),
2. (cca) Joint Directors of Income-tax or Joint Commissioners of Income-tax.
d. Deputy Directors of Income-tax or Deputy Commissioners of Income-tax or Deputy
Commissioners of Income-tax (Appeals),
e. Assistant Directors of Income-tax or Assistant Commissioners of Income-tax,
f. Income-tax Officers,
g. Tax Recovery Officers,
h. Inspectors of Income-tax.

(ii) Assessing Officer [ Sec. 2(7A)]

"Assessing Officer" means the Assistant Commissioner or Deputy Commissioner or Assistant

Director or Deputy Director or the Income-tax Officer who is vested with the relevant
jurisdiction by virtue of directions or orders issued under sub-section (1) or sub-section (2) of
section 120 or any other provision of this Act, and the Joint Commissioner or Joint Director
who is directed under clause (b) of sub-section (4) of that section to exercise or perform all or
any of the powers and functions conferred on, or assigned to, an Assessing Officer under this
Act;

(iii)   Appointment of Income-Tax Authorities [ Sec. 117 ]

1. Power of Central Government : The Central Government may appoint such persons
as it thinks fit to be income-tax authorities. It kept with itself the powers to appoint
authorities upto and above rank of an Assistant Commissioner of Income-Tax [ Sec.
117 (1) ]
 2. Power of the Board and Other Higher Authorities :  Subject to the rules and orders
of the Central Government regulating the conditions of service of persons in public
services and posts, the Central Government may authorize the Board, or a Director-
General, a Chief Commissioner or a Director or a Commissioner to appoint income-
tax authorities below the rank of an Assistant Commissioner or Deputy
Commissioner.  [ Sec. 117 (2) ]
3. Power to appoint Executive and Ministerial Staff :  Subject to the rules and orders
of the Central Government regulating the conditions of service of persons in public
services and posts, an income-tax authority authorized in this behalf by the Board may
appoint such executive or ministerial staff as may be necessary to assist it in the
execution of its functions.

(iv) Control of Income-Tax Authorities [ Sec. 118 ]

The Board may, by notification in the Official Gazette, direct that any income-tax authority
or authorities specified in the notification shall be subordinate to such other income-tax
authority or authorities as may be specified in such notification.

POWERS OF OTHER INCOME TAX AUTHORITIES:

https://registrationseva.com/income-tax-authority-and-its-powers-under-income-tax-act/

Powers of the Income Tax Authorities vary with the nature of the position acquired. Given
below are the various tax authorities along with the powers they hold under that position.
 
Director General/ Director:
The Director General/ Director, appointed by the Central Government, are required to
perform such functions as maybe assigned by the Central Government, are required to
perform such functions as may be assigned by the Central Board of Direct Taxes. This
position enjoys the following powers under different provisions of the Act:
 
a.     To give instructions to the Income-Tax officers
b.     To enquire or investigate into concealment
c.     To search and seizure
d.    To requisite books of account
e.     To survey
f.     To make any enquiry
 
Commissioners of Income Tax:
Commissioners are appointed by the Central Government. Generally, they are appointed to
head income-tax administration of a specified area. As the head of administration, a
Commissioner of income-tax enjoys certain administrative as well as judicial powers. A
commissioner may exercise powers of an assessing officer. It has the power to transfer any
case from one or more assessing officers to any other assessing officer. It can grant approval
for an order issued by the assessing officer. Prior approval is required for reopening of an
assessment. Its, also, has the power to revise an order passed by an assessing officer in
addition to many other powers as given in the Income Tax Act, 1961.
 
Commissioner (Appeals): 
Commissioners of Income-Tax (Appeals) are appointed by the Central Government. It is an
appellate authority vested with the following judicial powers:
a.     Power regarding discovery, production of evidence etc.
b.     Power to call information.
c.     Power to inspect registers of companies.
d.    Power to set off refunds against tax remaining payable.
e.     Power to dispose of appeals.
f.     Power to impose penalty.
 
Joint Commissioners:
Joint Commissioners are appointed by the Central Government. The main function of the
authority is to detect tax- evasion and supervise subordinate officers. Under the different
provisions of the Act, the Joint Commissioner enjoys the power to accord approval to adopt
fair market value as full consideration, instruct income tax officers, exercise powers of
income tax officers, the power to call information, to inspect registers of companies, to make
any enquiry among other powers.
 
Income-Tax Officers:
While Income-Tax officers of Class I services are appointed by the Central Government,
Income-tax Officers of Class II services are appointed by the Commissioner of Income-Tax.
Powers, functions and duties of Income-Tax officers are provided in many sections, some of
which are Power of search and seizure, Power of assessment, Power to call for information,
Power of Survey etc.
 
Inspectors of Income-Tax:
They are appointed by the Commissioner of Income-Tax. Inspectors of Income-Tax have to
perform such functions as are assigned to them by the Commissioner or any other authority
under whom they are appointed to work.
 
THE SCOPE OF EXERCISE OF THE POWERS GIVEN TO THE INCOME-TAX
AUTHORITIES:
The Income Tax Act, 1961 specifies the scope of the powers handed to the income-tax
authorities. Given below are some of the important powers of the Income Tax Authorities and
their scope as given in the Sections provided under the Income Tax Act, 1961:
 
·      Power to Transfer Cases [Section 127]:
CBDT can transfer the case from Assessing Officer to another A.O. subordinate to him after
giving a reasonable opportunity of being heard to the concerned assessee. However, no
opportunity of being heard shall be required if the case is to be transferred from one A.O. to
another A.O. within the same city, town or locality. Disputes regarding jurisdiction shall be
resolved by the concerned CCIT or CIT on mutual understanding. However, for any
disagreement, the matter shall be referred to CBDT and CBDT shall resolve the dispute by
way of issuing a notification in the Official Gazette of India.
 
 
·      Opportunity of Being Reheard [Section 129]:
Whenever, an Income Tax Authority ceases to exercise jurisdiction over a particular case and
is being succeeded by another Income Tax Authority, then the successor Income Tax
Authority shall continue the pending proceeding from the same stage at which it was left over
by the predecessor Income Tax Authority. There shall be no requirement on the part of the
successor Income Tax Authority to reissue any notice already issued by his
predecessor.  However, if the concerned assessee demands that before the successor Income
Tax Authority continues the proceeding, he shall be given an opportunity of being reheard to
explain his case to the successor Income Tax Authority, then in such case, an opportunity of
being reheard has to be given to the assessee. (However, such an opportunity of being reheard
is required to be given only if the concerned assessee demands for it and not otherwise).The
time of A.O. lost in giving such opportunity of being reheard to the assessee, shall be
excluded while calculating time limit to complete the assessment.
 
·      Discovery, Production of Evidence etc. [Section 131]:
The Assessing Officer, Deputy Commissioner (Appeals), Joint Commissioner, Commissioner
(Appeals), the Chief Commissioner and the Dispute Resolution Panel referred to in section
144C have the powers vested in a Civil Court under the Code of Civil Procedure, 1908 while
dealing with the following matters:
(i)    discovery and inspection;
(ii)   enforcing the attendance of any person, including any officer of a banking company and
examining him on oath;
(iii)  compelling the production of books of account and documents; and
(iv)  issuing commissions
 
·      Search and Seizure [Section 132]:
Today it is not hidden from income tax authorities that people evade tax and keep
unaccounted assets. When the prosecution fails to prevent tax evasion, the department has to
take actions like search and seizure.  Under this section, wide powers of search and seizure
are conferred on the income-tax authorities. The provisions of the Criminal Procedure Code
relating to searches and seizure would, as far as possible, apply to the searches and seizures
under this Act. Contravention of the orders issued under this section would be punishable
with imprisonment and fine under section 275A.
 
·      Power to Requisition Books of Account etc. [Section 132A]:
Where the Director or the Director-General or Commissioner or the Chief Commissioner in
consequence of information in his possession, has reason to believe that (a), (b), or (c) as
mentioned under section 132(1) and the book of accounts or other documents or the assets
have been taken under custody by any authority or officer under any other law, then the Chief
Commissioner or the Director General or Director or Commissioner can authorize any Joint
Director, Deputy Director, Joint Commissioner, Assistant Commissioner, Assistant Director,
or Income tax Officer to require the authority to provide sue books of account, assets or any
documents to the requisitioning officer, when such officer is of the opinion that it is no longer
necessary to retain the same in his custody.
 
·      Application of Retained Assets [Section 132B]:
This section provides that the seized assets can be appropriated against all tax liabilities of
the assessee. However, if the nature of source of acquisition of seized assets is explained
satisfactorily by the assessee, then, such assets are required to be released within a period of
120 days from the date on which last of the authorisations for search under section 132 is
executed after meeting any existing liabilities. For this purpose, it has been provided that
the assessee should make an application to the Assessing Officer within a period of 30 days
from the end of the month in which the asset was seized. The assessee shall be entitled to
simple interest at ½% per month or part of a month, if the amount of assets seized exceeds the
liabilities eventually, for the period immediately following the expiry of 120 days from the
date on which the last of the authorisations for search under section 132 or requisition under
section 132A was executed to the date of completion of the assessment under section 153A or
under Chapter XIV-B.
 
·      Power to call for information [Sections 133]:
The Commissioner The Assessing Officer or the Joint
Commissioner may for the purpose of this Act:
(a) Can call any firm to provide him with a return of the addresses and names of partners of
the firm and their shares;
(b) Can ask any Hindu Undivided Family to provide him with return of the addresses and
names of members of the family and the manager;
(c) Can ask any person who is a trustee, guardian or an agent to deliver him with return of the
names of persons for or of whom he is an agent, trustee or guardian and their addresses;
(d) Can ask any person, dealer, agent or broker concerned in the management of stock or any
commodity exchange to provide a statement of the addresses and names of all the persons to
whom the Exchange or he has paid any sum related with the transfer of assets or the
exchange has received any such sum with the particulars of all such payments and receipts;
 
·      Power of Survey [Section 133A]:
The term 'survey' is not defined by the Income Tax Act. According to the meaning of
dictionary 'survey' means casting of eyes or mind over something, inspection of something,
etc. An Income Tax authority can have a survey for the purpose of this Act. The objectives of
conducting Income Tax surveys are:
 
(a)To discover new assessees;
(b)To collect useful information for the purpose of assessment;
(c)To verify that the assessee who claims not to maintain any books of accounts is in-fact
maintaining the books; (d)To check whether the books are maintained, reflect the correct
state of affairs.
 
·      Power to Collect Certain Information [Section 133B]:
For the purpose of collection of information which may be useful for any purpose, the
Income tax authority can enter any building or place within the limits of the area assigned to
such authority, or any place or building occupied by any person in respect of whom he
exercises jurisdiction.
 
·      Power to Inspect Registers of Companies [Section 134]:
The Assessing Officer, the Joint Commissioner or the Commissioner (Appeals), or any
person subordinate to him authorised in writing in this behalf by the Assessing Officer, the
Joint Commissioner or the Commissioner (Appeals), as the case may be, may inspect and if
necessary, take copies, or cause copies to be taken, of any register of the members, debenture
holders or mortgagees of any company or of any entry in such register.
 
·      Other Powers [Sections 135 and 136]:
The Director General or Director, the Chief Commissioner or Commissioner and the Joint
Commissioner are competent to make any enquiry under this act and for all purposes they
shall have the powers vested in an Assessing Officer in relation to the making of enquiries. If
the Investigating officer is denied entry into the premises, the Assessing Officer shall have all
the powers vested in him under sections 131(1) and (2). All the proceedings before Income
tax authorities are judicial proceedings for purposes of section 196 of the Indian Penal Code,
 1860, and fall within the meaning of sections 193 and 228 of the Code. An income-tax
authority shall be deemed to be a Civil Court for the purposes of section 195 of the Criminal
Procedure Code, 1973.
 
JURISDICTION OF INCOME-TAX AUTHORITIES:
Income Tax authorities are required to exercise their powers and perform their functions in
accordance with directions given by the Board. Tax authority higher in rank, if directed by
Board, shall exercise the powers and perform tie functions of the Income- Tax authority
lower in rank. The directions of CBDT include direction to authorize any Income Tax
authority to issue instructions to their subordinates. In issuing instruction or orders, the Board
or the Income-Tax authority may adopt any one or more of the following criteria -
(a) Territorial area
(b) Person or classes of persons
(c) Incomes or classes of incomes
(d) Cases or classes of cases
 
The Board can also authorize Director General or Chief Commissioner or Commissioner to
issue orders in writing to the effect that the functions conferred or assigned to the Assessing
Officer in respect of the above four criteria shall be exercised or performed by Joint
Commissioner or Joint Director.
 
Also, the Assessing Officer has been vested with jurisdiction over any area or limits of such
area -
1. If a person carries on business or profession only in that area. In respect of that person; or
2. If a person carries on business or profession in more than one place, then the principal
place of business or profession situated in that area; or
3. In respect of any other person residing within that area.
 
Any dispute relating to jurisdiction to assess any person by an Assessing Officer shall be
determined by Director General /Chief Commissioner/Commissioner of Income Tax If the
dispute is relating to areas within the jurisdiction of different Director General /Chief
Commissioner/ Commissioner, then such issue is to be solved mutually among themselves. If
the above authorities are not in agreement among themselves such matter has to be decided
by the Board or Director General/ Chief Commissioner/ Commissioner authorized by the
Board.

Jurisdictions of Income Tax Authorities

Section 120 deals with Jurisdictions of Income Tax Authorities. Income tax authorities shall
exercise all or any of powers and functions conferred upon it by CBDT. CBDT can in
accordance with section 120(1) issue directions to such income tax authorities. Also if CBDT
directs, all such high-rank authorities can exercise powers and perform functions of such
lower ranked authorities. This section requires CBDT to consider matters in issuing such
directions –

 Territorial Area
 Persons or classes of persons
 Incomes or classes of incomes
 Cases or classes of cases
 Central Board of Direct Taxes (CBDT) may authorize any Principal Director General or
Director General or Principal Director or Director of income tax to perform such functions of
any other income tax authority. CBDT can empower the Principal Director General or
Director General or Principal Chief Commissioner or Chief Commissioner or Principal
Commissioner or Commissioner. Such empowered authority can issue orders in writing to the
effect that the powers and functions conferred on or assigned to the Assessing Officer under
this Act in respect of any specified area or person or class of person or persons or incomes or
classes of income or cases or classes of cases shall be exercised or performed by an
Additional Commissioner or Additional Director or a Joint Commissioner or Joint Director.

CBDT or any other such authorized authority in this behalf can confer jurisdiction with more
than one income-tax authority in relation to any case.

Jurisdiction of Assessing Officers [Section 124]

 An Assessing officer shall exercise his jurisdiction over persons who carry business in
his area of jurisdiction. He shall also exercise his jurisdiction over persons who have
businesses over many places but their principal place of business is in his area of jurisdiction.

 Where there arises a question whether an Assessing Officer has jurisdiction to assess
any person, it shall be determined by the Principal Director or Director General or the
Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or
Commissioner. In case such high ranking authorities are also not in agreement, Board can
determine their jurisdiction by way of notification in the Official Gazette.

 Where a person has filed return of income after the expiry of one month from the date
on which AO has served notice under section 142(1) or section 143(2) or after the completion
of the assessment, whichever is earlier; such person will have no right to question the
jurisdiction of such AO. Also, where assessee doesn’t file return after expiry of such time
given to him in the notices, AO’s jurisdiction cannot be questioned.

 Where the assessee has questioned jurisdiction of AO, AO shall first determine the
correctness and if not satisfied with it, he shall determine it under rules mentioned above
before making the assessment.

 Every AO shall have all powers conferred by this Act on income accruing or arising
or received within the area over which direction is issued under section 120(1) and 120(2).
 Power to transfer cases [Section 127]

This section provides power to high rank authorities to transfer cases from one Assessing
Officer to another. However, before transferring such cases, Assessee must be given a
reasonable opportunity of being heard. Also wherever possible, such authority shall maintain
reasons in writing for doing so.

Now suppose the Assessing Officer to whom the case is being transfered is under another
such high ranking Authorities above Assessing Officer. There is no issue if such high ranking
authorities are at agree. Such high ranking authorities under which the new AO is subordinate
shall pass the order.

But, in case such high ranking authorities are at disagreement, the Board or authority
authorized by board shall pass the order.

Some important Points –

 Where there is transfer between AO within the same city or locality or place, then
Assessee may not be given an opportunity of being heard.
 Such transfer can be made at any stage of the proceedings and it is not necessary to
re-issue any notices that have already been issued.

Change of Income Tax Authority [Section 129]

This section deals with cases where an income tax authority is succeded by another income
tax authority. As per this section, the succedding income tax authority may continue the
proceedings from the stage at which the proceedings were left by his predecessor. However,
an assessee can demand that before continuance of proceedings as above, the previous
proceedings or any part thereof be reopened or be reheard before passing of any assessment
order.
 2. Explain the various offences and penalties as per the Income Tax Act, 1961.

Date of Submission – 19 Sept 2020 (No submissions beyond this date)

Mode of uploading – Google form (Link will be provided one day in advance)
Naming of file – Name_Div_Roll No
You can prepare it in word file or convert to pdf.

Penalty Under Income Tax Act

Updated on Mar 05, 2020 - 11:45:21 AM
An assessee who commits an offence under the provisions of The Income Tax Act,
1961 shall be subject to penalty. The penalty is an additional amount levied and is
different from the tax payable.
Penalty is levied based on the law at the time of the offence being committed and not
as it stands in the financial year for which the assessment is being made.
The list of penalties levied under the Income Tax Act, 1961 are:

Sl Section No and Description Penalty

No

1) Section 158BFA- Determination of Minimum-100% of the tax leviable in respect of

undisclosed income for the block the undisclosed income
period, when a search is initiated under
Maximum-300% of the tax leviable in respect of
section 132 or books of account, other
the undisclosed income
documents or any assets are
requisitioned under section 132A in the The above penalty shall be levied only on the
case of any person income determined by the ITO in excess of the
ITR furnished by the assessee u/s 158BC and
appeal is not filed against such assessment.

2) Section 221(1)- Default in making Amount as directed by the assessing officer.

payment of taxes
However, the amount of penalty cannot exceed
the amount of tax in arrears

3) Section 234E- Failure to prepare the INR 200 for every day of default
statements in respect of TDS/TCS
within the time prescribed  as given
under section 200(3)/206C(3)

4) Section 234F- Default in furnishing of INR 5000 if return is furnished before 31st
return under section 139(1) within the December of the assessment year
time prescribed
INR 10000 in any other case
 Note: if the come does not exceed INR 5 Lakhs
then the penalty shall not exceed INR 1000

5) Section 270A-Penalty for under- 50% of the amount of tax payable on under-
reporting of income reported income
Penalty for under-reporting on account 200% of the amount of tax payable on under-
of misreporting of income reported income

6) Section 271(1)(b)-Failure to furnish INR 10000 for every failure

returns and comply with notices
Note:Applicable up to AY 2016-17

7) Section 271(1)(c)-Concealment of the Minimum:100% of tax sought to be evaded

particulars of his income/fringe benefits
Maximum: 300% of tax sought to be evaded
or furnished inaccurate particulars of
such income/fringe benefits
Note:Applicable up to AY 2016-17

8) Section 271(1((4)- Distribution of Maximum-150% of the tax avoided

profits by a registered firm not in
accordance with the partnership deed
and thereby partner returned his
income below the real amount
Note:Applicable up to AY 2016-17

9) Section 271A-Failure to keep,maintain INR 25000

or retain the books of
account,documents as required under
Section 44AA

10) Section 271AA(1)-Penalty in respect of 2% of the value of each international transaction

an international transaction/specified or specified domestic transaction entered into
domestic transaction with regard to:
-failure to keep and maintain any such
information and document as required
by Section 92D(1) or 92D(2)
-failure to report such transaction which
is required to be done
-Maintaining or furnishing incorrect
information or document

11) Section 271AA(2)- Failure to furnish INR 500000

 information and document to the
authority prescribed as required under
Section 92D(4)

12) Section 271AAA(1)- Where search has 10% of the undisclosed income of the specified
been initiated under Section 132 on previous year
between 1st day of June, 2007 and 1st
day of July, 2012

  Section 271AAA(2)- Nothing if the assessee-

contained in sub-section (1) shall apply
1. admits the undisclosed income and specifies
the manner in which such income has been
derived
2. substantiates the manner in which the
undisclosed income was derived
3. pays the tax, together with interest, if any, in
respect of the undisclosed income

No penalty under the provisions of clause (c) of

sub-section (1) of section 271 shall be levied.

13) Section 271AAB(1)-Where search has a)At the rate of 10% of the undisclosed income
been initiated between 1st day of July if:
2012 and 15-12-2016
-Assessee admits the undisclosed income along
with the manner of deriving the same.
-Substantiates the manner in which undisclosed
income was derived
-Pays the tax along with interest and furnishes
the return of income for the specified previous
year declaring undisclosed income on or before
the specified date
b)At the rate of 20% of the undisclosed income
if:
-The assessee does not admit the undisclosed
income
-Declares the income for the specified previous
year and pays the tax along with interest on the
undisclosed income on or before the specified
date
c)If not covered under clause (a) or (b) above –
60% of the undisclosed income of the specified
previous year
14) Section 271AAB(1A)-Where search a)At the rate of 30% of the undisclosed income
has been initiated after 15-12-2016 if:
-Assessee admits the undisclosed income along
with the manner of deriving the same.
-Substantiates the manner in which undisclosed
income was derived
-Pays the tax along with interest and furnishes
the return of income for the specified previous
year declaring undisclosed income on or before
the specified date
b) At the rate of 60% of the undisclosed income
if it is not covered under the provisions of clause
(a)

15) Section 271AAC-Income under section At the rate of 10% on tax payable under
68,69,69A,69B,69C,69D determined by Section 115BBE
the assessing officer if not included by
assessee or tax under Section 115BBE
not paid
*Section 68- Cash Credits
Section 69- Unexplained Investments
Section 69A- Unexplained money
Section 69B-Amount of investments
not fully disclosed in books of account
Section 69C-Unexplained expenditure 

16) Section 271AAD- Penalty for false If any assessing officer finds-
entry, fake invoices etc. in books of
a. A false entry, or
account
b. An omission of any entry which is relavant for
computation of total income of an assessee
He may direct the assessee to pay a penalty of an
amount equal to sum of such false or omitted
entries
The false entry here means the following:
a. Forged or false document such as a fake
invoice
b. Any invoice of supply or receipts of goods or
services issued by any person without actual
supply or receipt of goods or services
 c. An invoice in respect of supply or receipt of
goods or services or both to or from a person
who does not exist

17) Section 271B-Failure to get the In the case of business: ½% of the turnover/gross
accounts audited or furnish the  report receipts
as required under Section 44AB
In the case of profession: ½% of the gross
receipts 
OR
INR 150000
Whichever is less

18) Section 271BA-Failure to furnish a INR 100000

report from an accountant to be
furnished by persons entering into an
international transaction or specified
domestic transaction under Section 92E

19) Section 271BB-Failure to subscribe to 20% of such amount

the eligible issue of capital referred in
Section 88A(1)

20) Section 271C- Failure to deduct tax at Sum equal to the amount of tax not paid or failed
source to deduct

21) Section 271CA-Failure to collect tax at Sum equal to the amount of tax not collected
source

22) Section 271D- Accepting loan or Sum equal to the loan or deposit or specified
deposit or specified sum in sum taken
contravention of Section 269SS

23) Section 271DA-Receiving any Sum equal to the amount of receipt

sum(INR 2 Lakhs or more) in
contravention to the provisions of
Section 269ST 

24) Section 271E-Failure to comply with Sum equal to the amount of loan/deposit/specific
the provisions of Section 269T with advance repaid.
regard to the repayment of
loan/deposit/specific advance

25) Section 271F-Failure to furnish the INR 5000

 returns as required under Section
139(1) or by its proviso before the end
of the relevant assessment year
Note: Applicable up to AY 2017-18

26) Section 271FA-Failure to furnish a INR 500 per day of default

statement of financial transaction or
INR 1000 per day of default
reportable account under Section
285BA(1)
Failure to furnish the statement within
the period specified in the notice issued
under Section 285BA(5)

27) Section 271FAA Furnishing inaccurate INR 50000

statement of financial transaction or
reportable account.

28) Section 271FAB -Failure to furnish INR 500000

statement/information/document within
the time prescribed as provided under
Section 9A(5)

29) Section 271FB- Failure to furnish a INR 100 per day of default
return of fringe benefits as required
under Section 115WD(1) within the
prescribed time

30)  Section 271G-Failure to furnish 2% of the value of the international transaction

information under Section 92D(3) in or specified domestic transaction
relation to an international transaction
or specified domestic transactions

31)  Section 271GA-Failure by the Indian 2% of the value of the transaction in respect of
concern to furnish any information or which such failure has taken place if such
document under Section 285A  transaction had the effect of directly or indirectly
transferring the right of management/control in
Section 285A
relation to the Indian concern
-Where any interest/share in an entity
INR 500000 in any other case
registered outside India obtains its
value from assets located in India and
-Where such foreign company holds
assets in the Indian concern 
Such an Indian concern shall, for the
purposes of determination of any
 income accruing or arising in India,
furnish the documents within the
prescribed time 

30) Section 271GB- Failure to furnish the

Period of Delay Penalty
report/submitting an inaccurate report
by the reporting entity which is
required to furnish country-by-country Less than one month INR 5000
report as required under Section 286 for every
day of
Failure to produce the documents default
within 30 days of notice as prescribed
under Section 286(6)
More than one month INR 15000
Furnishing inaccurate information in for every
the report which is to be furnished day of
under Section 286(2) default

Continuing default even INR 50000

after service of notice for every
under either under (a) or day of
(b) above default

INR 5000 for every day of default starting after

the period for furnishing the document expires
INR 500000

33) Section 271H- Failure to furnish Minimum: INR 10000

TDS/TCS statements  of furnishing
Maximum: INR 100000
incorrect information within the
prescribed time
Note: Applicable to TDS/TCS
statements to be delivered after 01-07-
2012 

34) Section 271I-Failure in furnishing the INR 100000

information related to the payment
made  to a non-resident, which is not a
company/foreign company of any sum
(even though not chargeable under the
provisions of  this act) 

35) Section 271J-Incorrect information in INR 10000 for each such report/certificate
reports/certificates by an
accountant/merchant banker/registered
valuer
36) Section 272A(1)- Any person INR 10000 for each default
fails/refuses to
-Answer questions put by the IT
authority
-Sign statements which the IT authority
requires him to do 
-Give evidence or produce the books
under summons issued under Section
131(1)
-Comply with the notice issued under
Section 142(1) or 143(2) or 142(2A)

37) Section 272A(2)- Failure to INR 100 for every day of default 
-Furnish the statement regarding In sections related to TDS/TCS, the amount of
ownership/beneficial interest in the penalty shall not exceed the amount of tax-
securities in order to determine whether deductible/collectible.
tax is borne on the same as required
under Section 94(6)
-Furnish the notice of discontinuance
within 15 days under section 176(3)
-Furnish information, TDS return, TCS
returns and submission of statements by
producers of cinematograph films under
section 133/206/206C/285B
-To allow inspection/copies of the
register under Section 134
-To furnish return of income under
Section 139(4A) or 139(4C)
-To deliver a copy of the declaration for
transactions where no TDS needs to be
deducted as given under Section 197A
-To furnish a certificate for TDS/TCS
under section 203/206C
-To deduct and pay tax in respect of
salary as referred to in Section 226
-To furnish a statement to the person
receiving the salary complete
particulars of perquisites or profits in
lieu of salary under section 192(2C)
-To deliver in due time a copy of
declaration as required under Section
 206C(1A)
-To deliver statements pertaining to
TDS/TCS under section 200(3) or
206C(3)
-To furnish quarterly returns in respect
of payment of interest to residents
without deduction of tax within the
prescribed time and in a prescribed
manner under section 206A(1)
-To furnish a statement in respect of
sums credited to the Central
Government under Section 200(2A) or
Section  206C(3A).

38) Section 272AA-Failure to comply with Maximum: INR 1000

Section 133B wherein an income tax
authority has the power to call for
information

39) Section 272B- Failure to comply with INR 10000

Section 139A with regard to a
INR 10000
permanent account number(PAN)
-PAN is to be quoted in the documents
as prescribed by the Board under
Section 139(5)(c)
-PAN is to be furnished to the person
deducting tax by the person receiving
the income
PAN is to be furnished to the person
responsible for collecting tax by the
buyer/licensee/lessee
If in any of the circumstance the PAN
furnished is false or the person believes
it to be false then he shall be liable to a
penalty

40) Section 272BB- Failure to apply/quote INR 10000

the tax deduction/tax collection number
INR 10000
Tax deduction number/ tax collection
number falsely quoted or the person
believes it to be false