Section 271AA – Penalty for failure to keep / maintain information and documents in respect of an international or specified domestic transaction

Provisions of section 92D of the Income Tax Act, 1961 mandates the following categories of persons to maintain and keep specified information and documents –

  • The person who has entered into an international transaction (term defined under section 92B); or
  • The person who has entered into a specified domestic transaction (term defined under section 92BA).

In case the person fails, to maintain and keep such specified information and documents, he shall be liable to pay the penalty under section 271AA of the Income Tax Act. The penalty provisions of section 271AA are explained in the present article.

Penality

Coverage of provisions of section 271AA of the Income Tax Act

The penalty under provisions of section 271AA is leviable under the following situations –

1. The person (entering into an international transaction / a specified domestic transaction) fails to keep / maintain information and documents as required under section 92D (1) or section 92D (2) of the Income Tax Act.

2. The person (entering into an international transaction / a specified domestic transaction) fails to report the said transaction.

3. The person (entering into an international transaction / a specified domestic transaction) maintains incorrect information / documents or furnishes incorrect information / documents.

4. The person (entering into an international transaction / a specified domestic transaction) fails to furnish the information and documents as required under section 92D (4) of the Income Tax Act.

Amount of penalty under section 271AA of the Income Tax Act

The amount of penalty leviable under section 271AA is tabulated hereunder –

Type of Default Directing authority Amount of penalty
Failure to maintain and keep any information and documents as required under section 92D (1) or section 92D (2). The Assessing Officer of the Commissioner (Appeals) An amount equal to 2% of the value of each international or specified domestic transaction.
Failure to report the international or a specified domestic transaction The Assessing Officer of the Commissioner (Appeals) An amount equal to 2% of the value of each international or specified domestic transaction.
Furnishing or maintaining of an incorrect information / document The Assessing Officer of the Commissioner (Appeals) An amount equal to 2% of the value of each international or specified domestic transaction.
Failure to furnish the information and document as required under section 92D (4) Authority prescribed under section 286 (1) INR 5,00,000

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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One Comment

  1. R P Kapo r I ITORetd says:

    My querry is Can ITO levy penalty under section 271 A for for estimated addition made in low household withdrawls and also for estimated addition made for car petrol expenses for personal use If not please quote case law RAJ

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