The person who breaches the provisions of section 269T of the Income Tax Act is liable to pay the penalty under section 271E of the Income Tax Act.
The basic understanding of section 269T states that the person cannot repay any loans / deposits / specified advances in cash if the amount of payment is INR 20,000 or more. While repaying such loans / deposits / specified advances, if the person doesn’t satisfy the restriction imposed under section 269T, then such a person would be liable to pay the penalty under section 271E.
The present article meticulously explains the provisions of section 271E of the Income Tax Act. It also covers the explanation of connecting provisions of section 269T along with the amount of penalty payable under section 271E.
Provisions of section 271E states as under –
The provisions of section 269T restrict the person from repaying the loans / deposits / specified advances in the following cases –
In case the transaction is covered within any of the above mentioned situations, then, the repayment of the loans / deposits / specified advances is to be done in any of the following mode –
The above restriction imposed under provisions of section 269T is not applicable in case of repayment of loans / deposits / specified advances taken or accepted from any of the following categories of person –
The penalty under section 271E is payable in case the person contravenes provisions of section 269T of the Income Tax Act. In such a case, the defaulter is liable to pay the penalty amounting to the sum equal to the loans / deposits / specified advances so repaid.
It is important to mention here that in case the defaulter proves the reasonable cause for the failure so committed, then, as per provisions of section 273B, no penalty can be imposed under section 271E.
|Section 272BB Penalty for failure to comply section 203A provisions
|Section 272B Penalty for failure to comply with provisions of PAN
|Section 272AA Penalty for failure in complying with provisions of section 133B
|Section 272A Penalty for failure to answer questions or furnish information / returns/ statements or allow inspections etc
|Section 271J Penalty on professionals for furnishing incorrect information in reports / certificates
|Section 271I Penalty for failure in furnishing Form 15CA & Form 15CB
|Section 271H Penalty for late filing/non-filing of TDS or TCS return
|Penalty for failure in furnishing report or furnishing inaccurate report under section 286 – Section 271GB
|Section 271GA Penalty for failure in furnishing the information / document in Form 49D as required under section 285A
|Section 271G Penalty for failure to furnish information / document as per provisions of section 92D
|Section 271FB Penalty for default in furnishing return of fringe benefits
|Section 271FAB Penalty for failure to furnish statement / information / document by an eligible investment fund
|Penalty for providing inaccurate statement of financial transaction or reportable account- Section 271FAA
|Section 271FA Penalty for failure in furnishing statement of financial transactions or reportable account
|Section 271E Penalty for contravening provisions of section 269T
|Section 271DB | Penalty for contravening provisions of section 269SU
|Section 271DA Penalty for contravening provisions of section 269ST
|Section 271CA Penalty for failure to collect tax at source (TCS)
|Section 271D Penalty for contravening provisions of section 269SS
|Section 271C Penalty for failure / non-deduction / non-payment of TDS
|TDS Rate Chart for AY 2020-21 and AY 2021-22
|Section 271BA Penalty for failure to furnish section 92E report
|Section 271B Penalty for failure to get accounts audited
|Section 271AAC Penalty in respect of certain specified income
|Section 271AA Penalty for failure to maintain Transfer Pricing documents
|Section 271A Penalty for failure to keep / maintain or retain books of accounts, documents
|Section 270A(1) Penalty for under-reporting & misreporting of income
|Section 269SU Acceptance of payment through electronic modes
|Section 234F Late fees for default in filing of income tax return
|Section 234E Late Fee for default in filing of TDS / TCS returns
|Section 158BFA(2) – Penalty on undisclosed income for block period
|Section 140A(3) Penalty for non-payment of self-assessment tax