Clause 441 of the Income Tax Bill, 2025 imposes a fixed penalty of INR 25,000 for failure to keep, maintain, or retain books of account and documents as required under Section 62 or relevant rules, mirroring the existing Section 271A of the Income-tax Act, 1961. Both provisions aim to ensure compliance with statutory record-keeping obligations essential for tax assessment and deterrence of evasion. Clause 441 authorizes assessing officers and appellate authorities to impose penalties but lacks a "without prejudice" clause present in Section 271A, potentially affecting cumulative penalty applications. Neither provision allows a defense of reasonable cause, enforcing strict liability. The fixed penalty promotes certainty but may raise proportionality concerns. Procedural safeguards such as natural justice principles and appeal rights apply generally. The new clause consolidates and continues the penalty regime with minor differences that may require clarifications to address interpretative ambiguities and ensure fairness in enforcement.
Clause 441 of the Income Tax Bill, 2025 imposes a fixed penalty of INR 25,000 for failure to keep, maintain, or retain books of account and documents as required under Section 62 or relevant rules, mirroring the existing Section 271A of the Income-tax Act, 1961. Both provisions aim to ensure compliance with statutory record-keeping obligations essential for tax assessment and deterrence of evasion. Clause 441 authorizes assessing officers and appellate authorities to impose penalties but lacks a "without prejudice" clause present in Section 271A, potentially affecting cumulative penalty applications. Neither provision allows a defense of reasonable cause, enforcing strict liability. The fixed penalty promotes certainty but may raise proportionality concerns. Procedural safeguards such as natural justice principles and appeal rights apply generally. The new clause consolidates and continues the penalty regime with minor differences that may require clarifications to address interpretative ambiguities and ensure fairness in enforcement.
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