Penalty for inaccurate reporting clarified to include due diligence failures; reasonable cause defence added under amended provisions.

The amendment specifies that penalty applies where a person furnishing statements under section 285BA either furnishes inaccurate information or fails to comply with prescribed due diligence, to align with the AEOI/CRS framework. It further adds the penalty provision to the scope of section 273B, allowing a reasonable cause defence against imposition of the penalty. The changes are enacted prospectively as provided in the Finance Bill.

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