Section 465 - Penalty for failure to answer questions, sign statements, furnish information, returns or statements, allow inspections, etc.

Penalties for refusal or noncompliance with tax summons and notices: Rs.10,000 per default; Rs.500 daily until remedied

A person who, when legally required in tax proceedings, refuses to answer questions, sign required statements, attend or produce documents in response to a summons, or comply with specified notices or directions, is liable to a Rs.10,000 penalty for each default. Separate failures (detailed categories) to give notices, furnish returns, allow inspections, deliver prescribed declarations, certificates or statements, or deduct and pay tax attract Rs.500 per day until remedied, subject in some cases to a cap equal to the tax deductible or collectible. Designated senior tax officials specified by the statute impose these penalties.