Penalties on Trust & Institutions - Section 428, 445, 464, 465, 470 ( New) / 234F, 271AAE, 271K, 272A, 273B(Old)

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....es a return under section 263(5) beyond nine months from the end of the relevant tax year, the person is liable to pay: Rs.1,000, where total income does not exceed Rs.5 lakh; or Rs.5,000, in any other case. Section 428(c): Failure to get accounts audited and furnish audit report Section 428(c) applies where a person: • fails to get his accounts audited for any tax year or years; or • fails to furnish the audit report, as required under section 63. The fee is: Period of default Fee Delay up to one month Rs.75,000 Thereafter Rs.1,50,000 Section 428(d): Failure to furnish accountant's report Section 428(d) applies where a person fails to furnish a report from an accountant as required under section 172. The fee is: • Rs.50,000 for a delay up to one month; and • Rs.1,00,000 thereafter. Comparative Analysis: Section 234F, 271B, 271BA of the Income Tax Act, 1961 vs. Section 428 of the Income Tax Act, 2025 Particulars Section 234F - Income-tax Act, 1961 Section 271B - Income-tax Act, 1961 Section 271BA - Income-tax Act, 1....

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....y or indirectly, for the benefit of related persons, the penalty under clause (a) may be Rs.10 lakh. Section 445(b) - Penalty for Subsequent Violation Where the same type of violation is noticed again in any subsequent tax year, the penalty increases substantially. The Assessing Officer may impose a penalty equal to: 200% of the aggregate amount of income applied, directly or indirectly, for the benefit of a related person. Accordingly, where Rs.10 lakh is applied for the benefit of related persons in a subsequent tax year and the conditions of section 445(b) are satisfied, the penalty may amount to Rs.20 lakh. Section 355(h) - Meaning of Related Person Section 337, Table Sl. No. 2 - Specified Income Section 445 is specifically triggered where the benefit to a related person constitutes specified income under section 337, Table Sl. No. 2. Comparative Analysis: Section 445 of the Income-tax Act, 2025 vs. Section 271AAE of Income-tax Act, 1961 Particulars 271AAE of Income-tax Act, 1961 Section 445 - Income-tax Act, 2025 Nature of provision The 1961 Act primarily dealt with the substantive restriction on application of income fo....

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....itution Under clause (a), the Assessing Officer may impose a penalty where a research association, university, college or other institution referred to in section 45 fails to deliver or furnish the documents prescribed under section 45(4)(a). The penalty is: minimum: Rs.10,000; and maximum: Rs.1,00,000. Section 464(b) - Failure by Institution or Fund to Furnish Statement or Certificate Clause (b) applies to an institution or fund which fails: to deliver or cause to be delivered the statement within the time prescribed under section 354(1)(e); or to furnish the certificate prescribed under section 354(1)(g). The penalty prescribed is again: • not less than Rs.10,000; and • up to Rs.1,00,000. Comparative Analysis: Section 271K of the Income-tax Act, 1961 vs. Section 464 of the Income-tax Act, 2025 Particulars Section 271K - Income-tax Act, 1961 Section 464 - Income-tax Act, 2025 Nature of provision Penalty for failure to furnish specified statements, documents or certificates. Penalty for failure to furnish specified statements, documents or certificates. Authority imposing penalty ....

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....ply with Summons Where a summons is issued under section 246(1) requiring a person: • to attend and give evidence; or • to produce books of account or other documents, and the person fails to attend or produce the books/documents at the specified place and time. Section 465(1)(d) - Failure to Comply with Notice or Direction Penalty is attracted where a person: • fails to comply with a notice under section 268(1); • fails to comply with a notice under section 270(8); or • fails to comply with a direction issued under section 268(5). Section 465(2) - Daily Penalty of Rs.500 A person is liable to pay Rs.500 for every day during which the failure continues in respect of the defaults specified in clauses (a) to (m). Section 465(2)(a) - Failure to Comply with Notice under Section 175(7) Section 465(2)(b) - Failure to Give Notice of Discontinuance A person carrying on business or profession is liable to the daily penalty where he fails to give the notice of discontinuance(business / profession) required under section 320(3). Section 465(2)(c) - Failure to Furnish Specified Returns, Sta....

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....t Director or Joint Commissioner, that authority may impose the penalty. Section 465(4)(b) For a case under section 465(1)(d), the penalty is imposed by the income-tax authority that issued the relevant notice or direction. Section 465(4)(c) For a failure under section 465(2)(f), the penalty is imposed by the: • Principal Chief Commissioner; • Chief Commissioner; • Principal Commissioner; or • Commissioner. Section 465(4)(d) In other cases, the penalty is imposed by the Joint Director or Joint Commissioner. Section 465(5) - Income-tax Authority Exercising Court-like Powers Section 465(5) expands the expression "income-tax authority" for purposes of the section. It includes the: • Principal Director General/Director General; • Principal Director/Director; • Joint Director; and • Assistant Director/Deputy Director, while exercising powers vested in a court under the Code of Civil Procedure, 1908, in relation to matters specified in section 246(1). Reasonable Cause Defence - Section 470 Section 470 expressly provides that no penalt....