statements or allow inspections etc

CA Sandeep Kanoi 21 Feb 2020 98,148 Views 0 comment Print Income Tax | Articles

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The penalty provisions of section 272A of the Income Tax Act covers various penalty like failure to answer the questions or failure in furnishing several information / returns / statements etc. The provisions of section 272A are taken up and explained in the present article.

Applicability of provisions of section 272A of the Income Tax Act

The penalty provisions of section 272A are basically divided into following two parts –

1. Section 272A (1) – The first part covers the following defaults –

The person, who is legally bound, refuses to answer to any of the question put up by the Income Tax Authority; or
The person refuses to sign the statement, which is made by him in the course of any proceedings, under the Income Tax Act; or
The person, to whom the summons is issued, fails to attend or produce the required books of accounts or documents at the given time and place; or
The person fails to comply with a notice issued under section 142 (1) or notice issued under section 143 (2); or
The person fails to comply with the direction issued under section 142 (2A).

The word penalty wooden cubes with burnt letters

2. Section 272A (2) – The second part covers the following listed defaults –

The person who fails to comply with a notice issued under section 94 (6) [avoidance of tax by certain transactions in securities]; or
The person fails to give notice regarding discontinuance of business / profession as required under section 176 (3); or
The person fails to furnish income tax return as required under section 139 (4A) or section 139 (4C).
The person fails to furnish in prescribed time any of the returns or statements or particulars mentioned in the following sections –
- Section 133 – Power to call for information
- Section 206 – TDS returns
- Section 206C – TCS returns
- Section 285B – Submission of a statement by the producers of cinematograph films.
The person fails to allow inspection of the register referred in section 134 or fails to allow inspection of any entry in such register or fails to allow the copies of such register.
The person fails to deliver or cause to be delivered the following –
- A copy of the declaration, within the prescribed time limit, mentioned in section 197A; or
- A copy of the declaration, within the prescribed time limit, referred in section 206C (1A); or
- A copy of the statement within the time limit prescribed under section 200 (3) or proviso to section 206C(3); or
- A copy of the statement within the time limit prescribed under section 206A (1); or
- A copy of the statement within the time limit prescribed under section 200 (2A) or section 206C (3A).
The person fails to furnish a statement as required under section 192 (2C); or
The person fails to furnish a certificate as required under section 203 (TDS certificate) or under section 206C (TCS certificate); or
The person fails to deduct and pay tax as required under section 226 (2).

Amount of penalty payable under section 272A of the Income Tax Act

In case the penalty provisions of section 272A get applicable, the defaulter would be liable to pay the penalty as under –

Particular	Amount of penalty
Penalty for first part i.e. section 272A (1)	INR 10,000 for each default / failure
Penalty for second part i.e. section 272A (2)	INR 100 per day till the failure continues

List of authority authorized to impose a penalty under section 272A

The eligible authority who can impose a penalty under section 272A is explained hereunder –

Particulars	The authorized person who can impose the penalty
In case the contravention or failure or default occurs in the course of any proceedings before an Income Tax authority not lower in rank than a Joint Director or a Joint Commissioner.	Income Tax authority not lower in rank than a Joint Director or a Joint Commissioner.
In case of failure in complying with a notice issued under section 142 (1) or section 143 (2).	Income tax authority who has issued notice.
In case of failure in complying with the direction issued under section 142 (2A).	Income tax authority who has issued the direction
In case of failure to deliver a copy of the declaration mentioned in section 197A.	The Principal Chief Commissioner; or The Chief Commissioner; or The Principal Commissioner; or The Commissioner.
Any other case	The Joint Director; or The Joint Commissioner.

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