DT- Penalties & Prosecution

Question 1

Penalty - Tax - U/s 221

Answer 1

Fails to pay tax, TDS, TCS, demand etc. within 30 days of Demand Notice
Quantum - Maximum amount upto tax in arrears

Question 2

Penalty - Under Reported/Misreported Income - U/s 270A

Answer 2

Under Reported/Misreported Income
Quantum - 50%/200% on Under reported income

Question 3

Penalty - Books - U/s 271A & 271B

Answer 3

Fails to
271A - keep or maintain in books of accounts u/s 44AA
Quantum - Rs 25000/-
271B - get accounts audited or to furnish report upto due date u/s 44AB
Quantum - 0.50% of turnover/Gross Receipts (Max - 1.50 Lacs)

Question 4

Penalty - Cheating - U/s 271AAB, 271AAC, 271AAD

Answer 4

271AAB - Undisclosed Income found in Search
Quantum - 30%/60% of Undisclosed Income
271AAC - Income u/s 68,69,69A to 69D (Black Money)
Quantum - 10% of Tax u/s 115BBE
271AAD - Making false entry/Omission of Entry in books
Quantum - Equal to aggregate amt of false entry or omitted entry

Question 5

Penalty - TDS/TCS -u/s 271C, 271CA

Answer 5

271C - Fails to Deduct TDS
Quantum - Equal to Amt of TDS not deducted
271CA - Fails to collect TCS
Quantum - Equal to Amt of TCS not collected

Question 6

Penalty - 269 - U/s 271D,271DA,271E

Answer 6

271D - fails to comply to 269SS
Quantum - Amt of loan/ deposit accept
271DA - fails to comply to 269ST
Quantum - Amount received
271E - Fails to comply to 269T
Quantum - Amt of loan/ deposit repaid

Question 7

Penalty - SFT - U/s 271FA,271FAA

Answer 7

271FA - Fails to furnish SFT or reportable accounts
Quantum - Rs 500 per day till period specified in notice + Rs 1000 per day after that period
271FAA - Furnishing inaccurate SFT or reportable account
Quantum - Rs 50000

Question 8

Penalty - CA - U/s 271J

Answer 8

Furnishes inaccurate info in any report/certificate by CA/Merchant Banker/Registered Valuer
Quantum - Rs 10000 for each such report/certificate

Question 9

Penalty - Dept - U/s 272A(1),272A(2),272B

Answer 9

Fails to
272A(1)- Answer, sign, comply with summon ,notice u/s 142(1) or 143(2), Special audit
Quantum - Rs 10000 for each such default

272A(2) -Furnish Info u/s 133 , furnish ROI u/s 139(4A)/(4C)
Quantum - Rs 100 per day till defaults continue

272B - To quote PAN or quote incorrect PAN u/s 139A
Quantum - Rs 10000 for each such default

Question 10

Prosecution - AO - U/s 275B

Answer 10

Fails to afford necessary facility to authorized officer to inspect books U/s 132
Rigorous Imprisonment - upto 2 years (+) Fine

Question 11

Prosecution - TDS/TCS - 276B, 276BB

Answer 11

276B - Fails to deposit TDS with Govt
276BB - Fails to deposit TCS with Govt
Rigorous Imprisonment - 3 month to 7 years (+) Fine

Question 12

Prosecution - Payment of Tax & ROI - 276C, 276CC

Answer 12

276C - Willful attempt to invade payment of Tax, Penalty , Interest or Underreported Income
Rigorous Imprisonment - If TI upto 25 lacs - 6 months to 7 years (+) Fine, Exceed 25 lacs - 3 months to 2 years (+) Fine

276CC - Willful fails to furnish ROI upto due date
Rigorous Imprisonment - If TI upto 25 lacs - 6 months to 7 years (+) Fine, Exceed 25 lacs - 3 months to 2 years (+) Fine
(Note - in case of any assessee other than a Co has tax payable less upto 10000 - No prosecution)

Question 13

Prosecution - Notice & Special Audit - 276D

Answer 13

Willful failure to comply with requirements u/s 142(1) notice and 142(2A) special audit
Rigorous Imprisonment - upto 1 year (+) Fine