The person who has entered into the following transactions –

  • an international transaction (as defined under section 92B of the Income Tax Act); or
  • a specified domestic transaction (as defined under section 92BA of the Income Tax Act)

are mandatorily required to submit a report, as per provisions of section 92E of the Income Tax Act.

In case such person fails to submit the requisite report, then, on the direction of the Assessing Officer, a penalty under section 271BA of the Income Tax Act would be leviable on the defaulter. The current article explains the applicability of provisions of section 271BA and amount payable as a penalty under section 271BA of the Income Tax Act.

Applicability of section 271BA of the Income Tax Act

The penalty provisions of section 271BA states as under –

1. The penalty under section 271BA is applicable in case the person fails to furnish a report from an accountant as per provisions of section 92E of the Income Tax Act.

2. The penalty under section 271BA is applicable only in case the Assessing Officer directs the defaulter to pay the penalty.

Following can be concluded from the combined reading of section 92E of Income Tax Act, rule 10E of Income Tax Rules and section 271BA of Income Tax Act

  • Every person, who has entered into either an international transaction or a specified domestic transaction, is required to furnish a report from an accountant (section 92E);
  • The said report should be in Form 3CEB (rule 10E); and
  • The said report in Form 3CEB needs to be duly submitted within 30th
  • In case of failure, in duly submission of the report in Form 3CEB, a penalty under section 271BA would be imposed.

Amount of penalty payable under section 271BA of the Income Tax Act

The defaulter is required to pay the penalty amounting to INR 1Lakh under section 271BA.

Read Also:-

S. No. Title
1 Section 272BB Penalty for failure to comply section 203A provisions
2 Section 272B Penalty for failure to comply with provisions of PAN
3 Section 272AA Penalty for failure in complying with provisions of section 133B
4 Section 272A Penalty for failure to answer questions or furnish information / returns/ statements or allow inspections etc
5 Section 271J Penalty on professionals for furnishing incorrect information in reports / certificates
6 Section 271I Penalty for failure in furnishing Form 15CA & Form 15CB
7 Section 271H Penalty for late filing/non-filing of TDS or TCS return
8 Penalty for failure in furnishing report or furnishing inaccurate report under section 286 – Section 271GB
9 Section 271GA Penalty for failure in furnishing the information / document in Form 49D as required under section 285A
10 Section 271G Penalty for failure to furnish information / document as per provisions of section 92D
11 Section 271FB Penalty for default in furnishing return of fringe benefits
12 Section 271FAB Penalty for failure to furnish statement / information / document by an eligible investment fund
13 Penalty for providing inaccurate statement of financial transaction or reportable account- Section 271FAA
14 Section 271FA Penalty for failure in furnishing statement of financial transactions or reportable account
15 Section 271E Penalty for contravening provisions of section 269T
16 Section 271DB | Penalty for contravening provisions of section 269SU
17 Section 271DA Penalty for contravening provisions of section 269ST
18 Section 271CA Penalty for failure to collect tax at source (TCS)
19 Section 271D Penalty for contravening provisions of section 269SS
20 Section 271C Penalty for failure / non-deduction / non-payment of TDS
21 TDS Rate Chart for AY 2020-21 and AY 2021-22
22 Section 271BA Penalty for failure to furnish section 92E report
23 Section 271B Penalty for failure to get accounts audited
24 Section 271AAC Penalty in respect of certain specified income
25 Section 271AA Penalty for failure to maintain Transfer Pricing documents
26 Section 271A Penalty for failure to keep / maintain or retain books of accounts, documents
27 Section 270A(1) Penalty for under-reporting & misreporting of income
28 Section 269SU Acceptance of payment through electronic modes
29 Section 234F Late fees for default in filing of income tax return
30 Section 234E Late Fee for default in filing of TDS / TCS returns
31 Section 158BFA(2) – Penalty on undisclosed income for block period
32 Section 140A(3) Penalty for non-payment of self-assessment tax

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