Penalty under Section 271GB(4) applies when reporting entities provide inaccurate information and fail to notify or correct it. Penalty under Section 271GB(4) arises when a reporting entity furnishes inaccurate information and fails to remedy or disclose it: where the entity knew of the inaccuracy at submission but did not inform the Director General of Income tax; where the entity discovers the inaccuracy post submission but neither informs the Director General nor furnishes a corrected report within the prescribed corrective period; and where the entity provides inaccurate information or documents in response to a notice.