Procedure for imposing Penalty - Section 274

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....f being heard by way of a show cause notice to that effect. [ Amended Vide section 22 of the Finance Act, 2026 ] • Upto - 28.02.2026 - No order imposing a penalty under this Chapter shall be made unless the assessee has been heard, or has been given a reasonable opportunity of being heard (2) Penalty to be levied with prior approval of JC in certain cases [Section 274(2)] â....

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.... - optimising utilisation of the resources through economies of scale and functional specialisation; - introducing a mechanism for imposing of penalty with dynamic jurisdiction in which penalty shall be imposed by one or more income-tax authorities. [Section 274(2A), w.e.f. AY 2020-21] • The Central Government may, for the purposes of giving effect to the scheme made u/....

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.... to AO - An income-tax authority on making an order under this Chapter imposing a penalty, unless he is himself the Assessing Officer, shall forthwith send a copy of such order to the Assessing Officer. [Section 274(3)] (5) Penalty on the basis of law on the date of default - The quantum of penalty is to be determined in accordance with the law prevailing on the date of default a....

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....n 270A in any of the provisions of this Act • shall take reference to such order of assessment or reassessment, as the case may be.​​​​​​​ (7) Prior Approval [ Section 274(5) ] [ Amended Vide section 22 of the Finance Act, 2026, w.e.f. 01.03.2026 ]  Note:- • If the penalty order is passed without giving any op....