Penalty Provisions for Non-maintenance of Books under Indian Income Tax Law : Clause 441 of the Income Tax Bill, 2025 Vs. Section 271A of the Income-tax Act, 1961

Income Tax Bill 2025 Clause 441 sets twenty-five thousand rupee penalty for failing to maintain required books and documents

The Income Tax Bill 2025's Clause 441 imposes a fixed penalty of twenty-five thousand rupees for failure to keep, maintain, or retain books of account and documents as required under section 62 or relevant rules. The provision empowers Assessing Officers, Joint Commissioners, or Commissioners to impose penalties. This largely mirrors Section 271A of the current Income-tax Act 1961, maintaining the same penalty amount and authorities. However, Clause 441 omits the 'without prejudice' clause found in Section 271A, potentially creating interpretative issues regarding overlap with other penalty provisions. Both provisions operate on strict liability principles without reasonable cause exceptions.