Before the Finance Bill 2025, penalties under sections 271C, 271CA, 271D, 271DA, 271DB, and 271E of the Income-tax Act, 1961, were imposed by the Joint Commissioner. However, with the Finance Bill 2025, the responsibility for levying penalties under these sections will shift to the Assessing Officer (AO). The Joint Commissioner’s approval will still be required if the penalty amount exceeds the limits set in section 274(2) of the Income Tax Act, which are Rs 10,000 for an Income-tax Officer and Rs 20,000 for an Assistant or Deputy Commissioner. This amendment allows the AO to impose penalties, but the oversight mechanism remains for larger penalty amounts.
Page Contents
- FAQs Budget 2025: Certain penalties to be imposed by the Assessing Officer
- Q1. What penalties are imposed by the Joint Commissioner under Income-tax Act, 1961 prior to Finance Bill 2025?
- Q.2 What are the amendments brough in sections 271C, 271CA, 271D, 271DA, 271DB and 271E of the Act in Finance Bill 2025?
- Q3. After Finance Bill 2025, can penalties under sections 271C, 271CA, 271D, 271DA, 271DB and 271E of the Act be imposed without approval of the Joint Commissioner?
FAQs Budget 2025: Certain penalties to be imposed by the Assessing Officer
Q1. What penalties are imposed by the Joint Commissioner under Income-tax Act, 1961 prior to Finance Bill 2025?
Ans. Prior to Finance Bill, 2025, penalties under sections 271C, 271CA, 271D, 271DA, 271DB and 271E of the Income Tax Act, 1961, were imposed by the Joint Commissioner. Vide Finance Bill, 2025, penalties under these sections shall be levied by the Assessing Officer in place of Joint Commissioner. However, where penalty amount exceeds the limit specified in section 274(2) of the Income Tax Act,1961, such penalties shall be imposed only after the approval of Joint Commissioner.
Q.2 What are the amendments brough in sections 271C, 271CA, 271D, 271DA, 271DB and 271E of the Act in Finance Bill 2025?
Ans. The penalties under these sections shall be levied by the Assessing Officer in place of Joint Commissioner.
Q3. After Finance Bill 2025, can penalties under sections 271C, 271CA, 271D, 271DA, 271DB and 271E of the Act be imposed without approval of the Joint Commissioner?
Ans. No, AO shall take prior approval of Joint Commissioner for the passing of penalty order, where penalty amount exceeds the limit specified in sub-section (2) of section 274 of the Act. Presently the limit for penalty amount in section 274(2) of the Act is Rs 10,000/- for Income-tax Officer and Rs 20,000/- for the Assistant or Deputy Commissioner.
