Section 271GB of Income Tax Act "Penalty for failure to furnish report or for furnishing inaccurate report under section 286"
271GB. (1) If any reporting entity referred to in section
286, which is required to furnish the report referred to in
sub-section (2) of the said section, in respect of a
reporting accounting year, fails to do so, the authority
prescribed under that section (herein referred to as
prescribed authority) may direct that such entity shall pay,
by way of penalty, a sum of,-
(a) five thousand rupees for every day for which the failure
continues, if the period of failure does not exceed one
month; or
(b) fifteen thousand rupees for every day for which the
failure continues beyond the period of one month.
(2) Where any reporting entity referred to in section 286
fails to produce the information and documents within the
period allowed under sub-section (6) of the said section,
the prescribed authority may direct that such entity shall
pay, by way of penalty, a sum of five thousand rupees for
every day during which the failure continues, beginning from
the day immediately following the day on which the period
for furnishing the information and document expires.
(3) If the failure referred to in sub-section (1) or
sub-section (2) continues after an order has been served on
the entity, directing it to pay the penalty under
sub-section (1) or, as the case may be, under sub-section
(2), then, notwithstanding anything contained in sub-section
(1) or sub-section (2), the prescribed authority may direct
that such entity shall pay, by way of penalty, a sum of
fifty thousand rupees for every day for which such failure
continues beginning from the date of service of such order.
(4) Where a reporting entity referred to in section 286
provides inaccurate information in the report furnished in
accordance with sub-section (2) of the said section and
where-
(a) the entity has knowledge of the inaccuracy at the time
of furnishing the report but fails to inform the prescribed
authority; or
(b) the entity discovers the inaccuracy after the report is
furnished and fails to inform the prescribed authority and
furnish correct report within a period of fifteen days of
such discovery; or
(c) the entity furnishes inaccurate information or document
in response to the notice issued under sub-section (6) of
section 286,
then, the prescribed authority may direct that such person
shall pay, by way of penalty, a sum of five lakh rupees.