Penalty for non maintenance of transfer pricing records may lead to transaction based and fixed monetary sanctions under tax law. Where a person in respect of international transactions or specified domestic transactions fails to keep or maintain records required by section 92D(1) or 92D(2), fails to report such transactions, or furnishes incorrect information or documents, the Assessing Officer or Commissioner (Appeals) may direct a penalty equal to two per cent of the value of each such transaction. Separately, failure to furnish information and documents as required under section 92D(4) allows the prescribed income tax authority to direct a fixed monetary penalty of five lakh rupees.