The person who has entered into the following transactions –
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.
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 –
The defaulter is required to pay the penalty amounting to INR 1Lakh under section 271BA.
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