Fines and Penalties under Income Tax Act (FY 2076-77)
| Section | Particulars | Fines or Penalty |
|---|---|---|
| 117(1)(Ka) | Estimated Income Tax Return under Section 95(1) not filed by taxpayer | Rs 5,000 or 0.01% of the assessable income whichever is higher |
| 117(1)(Kha) | Advance Withholding Tax Return under Section 95Ka(5) not filed by advance tax withholding agent | 1.5% p.a. on the amount of tax to be withheld |
| 117(1)(Ga) |
Income Tax Return under Section 96(1) not filed by If the ITR is filed within the period of extension the fine under Section 117(Ga) is not attracted, otherwise fine is attracted from the due date for filing the ITR irrespective of the extension obtained. |
Person under Section 4(4): Rs 100 p.m. Others: Higher of: Rs 100 p.m.; or 0.1% p.a. on the amount of inclusions |
| 117(1)(Gha) | Financial Statement is not submitted within prescribed time by entities under Section 2(Dha) | 0.1% p.a. on the amount of receipts |
| 117(2) | Fails to maintain proper documentation for an income year as required by Section 81 | For the year during which the documentation is not maintained, calculated as: Higher of: Rs. 1000; or 0.1% of the amount of inclusions |
| 117(3) | Withholding Tax Return under Section 90(1) not filed by tax withholding agent | 2.5% p.a. on the amount of tax to be withheld |
| 118(1)(Ka) | Instalment tax to be deposited under Section 94 is not made as prescribed | 15% p.a. on outstanding amount |
| 119(1) | Failure to Pay Tax on or before the date on which the tax is payable. Section 119(2): For the purposes of calculating interest payable under Section 119(1), any extension granted under Section 98 is ignored. | 15% p.a. on the outstanding amount |
| 119(4) | In case tax has not paid within the date allowed under Section 110APayment of the outstanding tax in installments | Additional 5% p.a. is levied on the arrears |
| 119Ka | Except as otherwise provided in this Act, a person who fails to comply with this Act or the Rules | Rs. 5,000 to Rs. 25,000 |
| 120(Ka) | Makes a false or misleading statement or omits from a statement made to the Department any matter or thing without which the statement is false or misleading in a material particular, knowingly or recklessly to the Department | 100% of the amount of tax short paid |
| 120(Kha) | Makes a false or misleading statement or omits from a statement made to the Department any matter or thing without which the statement is false or misleading in a material particular, but not knowingly or recklessly to the Department | 50% of the amount of tax short paid |
| 121 | A person who knowingly or recklessly aids or abets another person to commit an offence under Chapter 23 (Section 123 to Section 130), or counsels or induces another person to commit such an offence | 100% of the underpayment of tax |
Note: The interest are calculated on the basis of months. Any part of the month is counted as a month.