Study Note - 23

PENALTY & PROSECUTION

This Study Note includes
23.1 Penalties and Prosecution for defaults
23.1 PENALTIES AND PROSECUTION FOR DEFAULTS
Section
158BFA
221(1)
271(1)(b)
271(1)(c)
271A
271AA

271AAA

271AAB

271B

Nature of Default
Undisclosed income determined by
the Assessing Officer u/s.158BC(c)
Default in making a payment of tax
within prescribed time

Minimum Penalty
100% of the tax on
undisclosed income
Such amount as the
Assessing Officer may
impose
Failure to comply with a notice u/s. ` 10,000 for each failure
142(1) or 143(2) or with a direction
issued u/s 142(2A).
Concealment of the particulars of 100% of Tax sought to
income or furnishing inaccurate be evaded.
particulars of income.
Failure to keep or maintain books of
` 25,000
A/c, document as required u/s.44AA.
Failure to keep and maintain A sum equal to two
information and document in respect per cent of the value
of international transaction (Specified of each international
domestic transactions) or failure to transaction entered into
report international transaction or by such person.
furnishing of incorrect information.
Penalty where search has been A sum computed at
initiated undisclosed income
the rate of 10% of the
undisclosed income of
the specified Previous
Year.
Undisclosed income in the case Admit the undisclosed
of search (applicable if search is income 10% of
initiated on or after July 1, 2012)
undisclosed income

Maximum Penalty
300% of the tax on
undisclosed income
Amount of Tax in
arrears
` 10,000 for each
failure.
300% of Tax sought
to be evaded.
` 25,000
A sum equal to two
per cent of the value
of each international
transaction entered
into by such person.
A sum computed at
the rate of ten per
cent of the undisclosed
income of the specified
Previous Year.
Admit the undisclosed
income 10% of
undisclosed income

Not admit the undisclosed Not

admit
the
income
income 20% of undisclosed
20% of undisclosed
undisclosed income
income
` 1,50,000
Failure to get accounts audited 1/2% of Total Sales,
u/s.44AB or to furnish such report Turnover or Gross
along with return of income by due receipts.
date

DIRECT TAXATION I 23.1