Penalties and Prosecutions

Here’s a detailed explanation of Penalty under Section 271AAB(1A) of the Income Tax Act, 1961, applicable when a search is initiated on or after 15th December 2016 and undisclosed income is found: 1. Key Provisions of Section 271AAB(1A) Applicability: Triggered when a search under Section 132is conducted after 15-12-2016, and undisclosed income is discovered. Penalty Rates: 30% of undisclosed income: […]

Here’s a detailed explanation of Penalty under Section 271AAC of the Income Tax Act, 1961, which applies to certain types of undisclosed or unexplained income: 1. Overview of Section 271AAC Section 271AAC imposes a penalty on taxpayers who fail to account for income categorized under Sections 68, 69, 69A, 69B, 69C, or 69D of the Income Tax Act. These sections

Here’s a detailed breakdown of Section 271AAD of the Income Tax Act, 1961, which imposes penalties for false entries or omissions in books of account to evade tax liability: 1. Overview of Section 271AAD Introduced by the Finance Act, 2020, this section targets fraudulent practices like fake invoices and bogus entries in books of account, especially post-GST

Here’s a detailed explanation of Penalty under Section 271H of the Income Tax Act, 1961, which applies to failures in furnishing TDS/TCS statements or providing incorrect information: 1. Overview of Section 271H Section 271H imposes penalties for: Delayed filingof TDS/TCS statements (e.g., Form 24Q, 26Q, 27Q). Furnishing incorrect informationin these statements (e.g., mismatched PANs, underreported deductions).

Here’s a detailed breakdown of Penalty under Section 271DA of the Income Tax Act, 1961, for failure to comply with Section 269ST (cash transaction limits): 1. Overview of Section 271DA Purpose: Penalizes recipients of cash exceeding ₹2 lakh in violation of Section 269ST, which restricts large cash transactions to curb black money and promote digital payments. Penalty Amount: 100% of the

Here’s a detailed analysis of Sections 269SU and 271DB of the Income Tax Act, 1961, which mandate businesses to accept payments through prescribed electronic modes and impose penalties for non-compliance: 1. Overview of Section 269SU Objective: To promote a cashless economy by requiring businesses with high turnover to offer low-cost digital payment options. Applicability: Businesses with annual sales/turnover/gross

Here’s a detailed analysis of Section 271J of the Income Tax Act, 1961, which imposes penalties for furnishing incorrect information in reports or certificates: 1. Overview of Section 271J Objective: To ensure accuracy and reliability in reports/certificates submitted by professionals (accountants, merchant bankers, registered valuers). Applicability: Applies when professionals furnish incorrect informationin: Audit reports (e.g., tax audit under

Here’s a detailed explanation of Section 271K of the Income Tax Act, 1961, which deals with penalties for failure to furnish statements or reports required under certain provisions: 1. Overview of Section 271K Objective: To enforce compliance with reporting requirements under specific sections of the Income Tax Act. Applicability: Applies when a person fails to furnish: Statements

Here’s a detailed breakdown of Section 270A of the Income Tax Act, 1961, which imposes penalties for under-reporting and misreporting of income: 1. Key Provisions of Section 270A 1. Overview of Section 270A Purpose: Introduced by the Finance Act, 2016 (effective from AY 2017–18), Section 270A replaces the older Section 271(1)(c)to provide clearer definitions and stricter penalties for inaccurate income reporting. Scope:

Here’s a detailed analysis of Immunity under Section 270AA of the Income Tax Act, 1961, which protects taxpayers from penalties and prosecution for under-reported income: 1. Overview of Section 270AA Section 270AA grants immunity from: Penalty under Section 270A(50% penalty for under-reporting income). Prosecution under Sections 276C(wilful tax evasion) and 276CC (failure to file returns). Objective: To encourage voluntary