The present article provides a briefing on penalty provisions of section 271FAB of the Income Tax Act. It also explains the relevant provisions of section 9A of the Income Tax Act along with the amount of penalty payable under section 271FAB.
The penalty provisions of section 271FAB get applicable as explained hereunder –
In order to understand the applicability of section 271FAB, it is important to understand the relevant provisions of section 9A, which are explained hereunder –
Section 9A provides that in case of an ‘Eligible Investment Fund’, the fund management activity being carried out by the ‘eligible fund manager’ (manager acting on behalf of the fund), shall not create a business connection in India of such funds.
Here, it is important to understand the two terms, namely, ‘Eligible Investment Fund’ and ‘Eligible Fund Manager’ which are explained hereunder.
Eligible Investment Fund means as under –
‘Eligible Investment Fund’ means a fund which is established or registered or incorporated outside India. The Eligible Investment Fund should satisfy the following conditions –
Eligible Fund Manager means the one who satisfies the following conditions –
Provisions of section 9A (5) mandate the ‘Eligible Investment Fund’ to furnish a statement (along with prescribed information / documents) within a period of 90 days from the end of the respective financial year.
In case the ‘Eligible Investment Funds’ fails to furnish such statement / information / documents then, they would be liable to pay the penalty under section 271FAB.
In case of default, the defaulter would be liable to pay the penalty amounting to INR 5 Lakhs under section 271FAB.
|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|