PAN/Aadhaar compliance: new per-default penalty regime distinguishes intentional false quoting from strict liability omissions and extends responsible person liability.
Clause 467 establishes a per-default penalty regime for non-compliance with section 262, differentiating intentional false PAN/Aadhaar quoting-which requires proof of knowledge or belief-from omissions treated as strict liability, and extends liability to persons responsible for ensuring correct quoting/authentication; it emphasizes authentication and digital e KYC integration while remaining silent on express procedural safeguards such as the opportunity to be heard, creating potential due process and transitional issues.

Penalty for non cooperation: new provision allows senior tax officers to impose a moderate monetary penalty without explicit hearing safeguards.
Clause 466 empowers specified senior tax officers to impose a moderate monetary penalty for failure to comply with section 254, mirroring prior penalty structure in authority and capped quantum but omitting express procedural safeguards such as an opportunity of being heard, defences like reasonable cause, and a requirement to record reasons, thereby raising concerns about procedural fairness and consistency in imposition.

Penalty for procedural defaults: fixed and daily fines, capped to tax collectible, with delegated authority to impose them.
Clause 465 creates a penalty regime for procedural non compliance under the Income Tax Bill, 2025: a fixed penalty for discrete defaults, a daily penalty for continuing defaults, a cap tying certain penalties to the amount of tax deductible or collectible, and specified authorities empowered to impose penalties; it broadens the definition of income tax authority and updates cross references to the restructured Bill, while notably omitting an explicit provision requiring an opportunity to be heard before penalty imposition.

Penalty regime for failure to furnish prescribed statements strengthens compliance under tax exempt reporting obligations.
A statutory penalty regime targets failure by specified research institutions and charitable funds to furnish prescribed documents, statements, or certificates within prescribed timeframes; penalties fall within a prescribed band and are imposed at the discretion of the Assessing Officer, operating as a civil compliance measure alongside general procedural safeguards and requiring stakeholders to update compliance processes to align with re referenced substantive sections.

Professional accountability: penalty for furnishing incorrect information in professional reports or certificates under the new income tax bill.
Clause 463 imposes a strict-liability penalty regime on accountants, merchant bankers and registered valuers for furnishing incorrect information in any report or certificate under the Act or rules. It prescribes a fixed per-instance monetary penalty and empowers the Assessing Officer, Joint Commissioner (Appeals) or Commissioner (Appeals) to impose the penalty upon satisfaction that incorrect information was furnished. The clause updates definitional references for valuers, omits an explicit definition of "accountant," and operates without prejudice to other civil or criminal consequences.

Penalty for failure to furnish information: fixed sanction for inaccurate or missing cross-border disclosure, raising proportionality concerns.
Clause 462 penalises any person required to furnish information under section 397(3)(d) who fails to supply such information or furnishes inaccurate information; the Assessing Officer may impose a fixed monetary penalty, the provision mirrors Section 271I in structure and intent, lacks an express reasonable-cause defence or gradation of penalty, and raises interpretative issues as to the scope of "inaccurate information," procedural safeguards, and proportionality in enforcement.

Penalty for failure to furnish statements: discretionary fines with short grace period where tax is paid and statement filed promptly.
Clause 461 creates a penalty for failure to deliver statements under section 397(3)(b) or for furnishing incorrect information, authorising the Assessing Officer to impose a discretionary monetary penalty equivalent in range to the existing Section 271H. Clause 461(2) exempts penalty where tax, fee and interest are paid to the Central Government and the statement is filed within a short grace period, thereby balancing deterrence with relief for prompt substantive compliance while leaving procedural safeguards and definitions, such as "incorrect information," unclearly specified.

Penalty for failure to submit statements may be imposed by the assessing officer as a daily or capped sanction, discretion preserved.
Clause 460 permits the Assessing Officer to impose discretionary monetary penalties on any person required to furnish a statement under section 505 for failure to file within the prescribed period, using a two-tier structure of a daily sanction for short-term delay and a capped penalty for longer default, with applicability dependent on the scope of the parent reporting obligation and subject to the general procedural and appellate framework of the tax law.

Reporting penalties: new clause preserves escalating daily fines and a large fixed penalty for inaccurate international tax reports.
Clause 459 establishes a tiered penalty regime under section 511 for reporting entities: daily penalties for failure to furnish reports, daily penalties for failure to produce information after the allowed period, an escalated daily penalty if default continues after service of a penalty order, and a substantial fixed penalty for furnishing inaccurate information or failing to correct known or discovered inaccuracies. The prescribed authority under section 511 is empowered to impose these penalties, and the clause mirrors Section 271GB in quantum and triggers while raising issues about reasonable cause relief and procedural safeguards.

Penalty for failure to report transfers of management or control triggers significant compliance and enforcement consequences.
Clause 458 creates a penalty for failure by an Indian concern to furnish information or documents under section 506, authorising the prescribed income-tax authority to impose either a transaction-value-based penalty where a transaction effects a direct or indirect transfer of management or control, or a fixed monetary penalty otherwise, and otherwise mirrors the substantive framework and enforcement objectives of Section 271GA of the Income-tax Act, 1961.

Transfer pricing documentation penalty: failure to furnish documents leads to transaction value based penalties and enforcement by tax authorities.
Failure to furnish prescribed transfer pricing information or documentation for international or specified domestic transactions triggers a transaction value based penalty under Clause 457, enforceable by the Assessing Officer, authorised Transfer Pricing Officer and the Commissioner (Appeals); the clause ties this enforcement directly to the obligations in section 171(2) and raises interpretive issues concerning the meaning of failure, computation of transaction value, overlap with other penalties, and the availability of a reasonable cause defence.

Penalty for failure to furnish statements: eligible investment funds face a fixed sanction under the bill; authority may impose it.
Clause 456 imposes a fixed penalty where an eligible investment fund fails to furnish required statements or information within the prescribed time; the prescribed income-tax authority may direct payment of the fixed sanction. The reporting deadline is set by the substantive eligibility reporting provision; the penalty is discretionary rather than automatic, lacks a graded scale, and does not expressly specify procedural safeguards such as criteria for discretion or an opportunity to be heard.

Penalty for inaccurate financial reporting imposes institutional and account-holder liability while enabling recovery of penalties from account holders.
Clause 455 mandates penalties for persons required to furnish statements of financial transactions or reportable accounts for providing inaccurate information or failing to meet due diligence obligations, and imposes an additional per-account penalty on reporting financial institutions where inaccuracies stem from account-holder-supplied false information; reporting institutions may recover such additional penalties from the responsible account holders by direct recovery or retention of funds, with imposition directed by the prescribed income-tax authority and substantive continuity with the former Section 271FAA.

Penalty for failure to furnish financial transaction statements - escalating daily sanctions for continued non-compliance after notice.
Clause 454 creates a statutory penalty regime for failure to furnish a statement of financial transaction or reportable account, prescribing a daily penalty accruing from the date the filing deadline lapses, with an escalated daily rate where default continues after a formal notice, and vesting discretionary imposition authority in the income-tax authority subject to procedural safeguards and rights to challenge.

Penalty for non-compliant loan repayments: Assessing Officer may impose a penalty equal to the amount repaid for procedural breaches.
Clause 453 permits the Assessing Officer to impose a penalty equal to any loan, deposit or specified advance repaid in contravention of section 188, applying to all persons and covering repayments made by non-transparent modes. The provision creates strict liability based on procedural breach rather than mens rea, centralizes enforcement with the Assessing Officer, and omits an explicit reasonable-cause defence, raising potential interpretative and transitional issues regarding the scope of specified advances and procedural safeguards.

Electronic payment mandate triggers daily penalties for non compliance unless a taxpayer proves good and sufficient reason.
Clause 452 empowers the Assessing Officer to impose a fixed per day monetary penalty for failure to provide prescribed electronic modes of payment under section 187, subject to a saving where the person proves good and sufficient reason for the failure; the provision mirrors the former section 271DB framework but streamlines authority and lacks detailed procedural guidance.

Monetary transaction penalty: discretion to impose a penalty equal to prohibited receipt unless good and sufficient reasons are proved.
Clause 451 empowers the Assessing Officer to impose a penalty equal to the sum received in contravention of section 186 unless the recipient proves good and sufficient reasons; the provision emphasises proportionality, vests discretion in enforcement, omits explicit procedural safeguards and mens rea, and mirrors the substantive penalty quantum and defence in the earlier statutory regime while differing in statutory tone and procedural concision.

Cash transaction penalty: acceptance of prohibited loans or deposits triggers penalty equal to amount received under the new clause.
Clause 450 imposes a penalty equal to the amount of any loan, deposit or specified sum taken or accepted in contravention of the substantive prohibition, centralizes authority to impose that penalty with the Assessing Officer, and leaves key interpretive and procedural questions-such as the definition of "specified sum", the availability of a reasonable cause exception, and limitation and hearing procedures-to be clarified elsewhere in the Bill or by administrative guidance.

Penalty for failure to collect tax at source: Assessing Officer may impose penalty equal to uncollected tax, discretion noted.
Clause 449 provides that any person required under Chapter XIX-B who fails to collect the whole or part of tax may be liable to a penalty equal to the amount of tax not collected, with the Assessing Officer empowered to impose that penalty; the clause covers total and partial failures, fixes the penalty quantum as equal to the uncollected tax, and does not expressly provide a reasonable cause exception.

Penalty for failure to deduct tax at source: equal to unpaid tax, imposed at Assessing Officer's discretion.
Clause 448 penalises failure to deduct, pay, or ensure payment of tax at source under Chapter XIX-B and specified notes, imposing a penalty equal to the tax unpaid and vesting discretion to impose that penalty in the Assessing Officer; the clause covers partial failures and obligations to ensure payment but is silent on an explicit reasonable cause defence.