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Tax deduction under 80GGA allows any donation amount for scientific research or rural development to be claimed.
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Disability deduction: dependent relief under one provision versus taxpayer's own deduction under the other provision.
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Section 80DD deduction applies only for maintenance of a disabled dependent, not for the taxpayer's own disability.
Deduction under 80DD permits an income tax deduction for maintenance, including medical treatment, of a handicapped dependent who is a person with disability; the deduction is available for expenditure in respect of such a dependent and is not available to a taxpayer for his or her own disability-related expenses.
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Deduction under section 80D denied for cash payments; only preventive health checkup expenses may be paid in cash.
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Medical insurance premium deduction allowed when an individual pays for spouse, self and dependents under section 80D.
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Tax benefit under 80CCG: guardian may claim deduction for investments made in a minor's name, subject to individual limits.
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Deduction under section 80CCC can be claimed by non-resident individuals contributing to pension funds under the statute.
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Education loan interest deductible for borrower; tuition fee relief limited to two children under a separate deduction.
Only interest paid on an education loan for the taxpayer or a dependent qualifies under the education-loan interest deduction head, while tuition fees qualify under a separate tuition-fee deduction head and are restricted to tuition paid for a limited number of children; the two deductions are distinct and non-overlapping.
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Deduction under section 80C: Post Office five year time deposit qualifies as an eligible investment for deduction.
Contributions to the Post Office five year time deposit scheme are eligible to be claimed as a deduction under section 80C, and may be included among other specified investments such as life insurance premiums, deferred annuities and provident fund contributions, subject to the overall limits and conditions applicable to 80C deductions.
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Section 80C deduction excludes loan repayments for renovation or repair of residential property under income tax law.
Repayments of loans taken for renovation or repair of residential property are not eligible for deduction under deduction under section 80C, which is confined to specified savings and investment outlays such as life insurance premiums, deferred annuities and provident fund contributions and does not include repair or renovation costs of a dwelling.
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Deduction under section 80C: repayment of principal on housing loan qualifies, interest payments do not.
Payments toward the cost of purchase or construction of a new residential property qualify for deduction under the provision and expressly include repayment of the principal amount of a housing loan; interest paid on such a housing loan is not eligible for deduction under the same provision.
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Deduction under section 80C covers life insurance, provident fund and deferred annuity contributions and limited tuition fees.
Deduction under section 80C permits tax deductions for specified savings and insurance instruments such as life insurance premia, provident fund contributions and deferred annuities, subject to statutory limits and qualifying conditions. Only tuition fees paid in India for full time education of up to two children qualify as deductible educational expenses; other charges like development fees or donations are not eligible.
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Deduction under section 80C available only to individuals and HUFs for life insurance and provident fund contributions.
The provision permits deduction for life insurance premia, deferred annuity premiums and contributions to provident funds, available exclusively to Individual and HUF taxpayers as the classes eligible to claim the tax benefit.
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Clubbing of minor income: investments made by the minor qualifying for investment-based deductions may be claimed when income is clubbed.
When a minor's income is clubbed with a parent's income, investments made by the minor that qualify under the investment-based deduction framework-including life insurance premiums, provident fund contributions, and deferred annuity payments-may be considered as deductible in computing the parent's taxable income.
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HRA exclusion for self-employed; rent deduction available under section 80GG if statutory eligibility conditions are met.
HRA under section 10(13A) is a salary-linked exemption not available to self-employed individuals; self-employed taxpayers may claim a deduction for rent paid under section 80GG, subject to the statutory eligibility conditions and limits governing that deduction.
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Actual rent payment required for HRA deduction - absence of rent payment for any period disqualifies entitlement to deduction.
The House Rent Allowance deduction under section 10(13A) is conditional on actual rent payment for residential accommodation; if no rent is paid for any period, no deduction is allowable for that period, and entitlement to HRA or notional occupancy does not replace the need for real rent outgo.
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Deduction under section 10(13A) available despite house ownership when employee resides in rented accommodation.
An employee who actually resides in rented accommodation may claim the salary-specific exemption for rent allowance under section 10(13A) even if he owns a house property in the same or a different city; entitlement depends on factual occupancy of rented premises rather than mere ownership of residential property.

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Comparison of section 456 "Penalty for failure to furnish statement or information or document by an eligible investment fund." between the Income-Tax Act, 2025 (as passed) and the Income-Tax Bill, 2025 (as originally introduced)

16 September, 2025

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Section 456 Penalty for failure to furnish statement or information or document by an eligible investment fund.

Income-tax Act, 2025

At a Glance

This provision imposes a fixed penalty on an "eligible investment fund" that fails to furnish a required statement, information or document. It matters to investment funds and the income-tax department because it creates a mandatory monetary sanction for non-compliance with specified reporting obligations. The effective date or enactment date is Not stated in the document.

Background & Scope

Statutory hooks: Clause 456 (Bill version) links the penalty to obligations u/s 9(12)(e) [section 9A(5)]. Section 456 (Act version) links the penalty to paragraph 4 of Schedule I. Both provisions concern penalties for eligible investment funds that fail to furnish statements/information/documents. Definitions or explanations of "eligible investment fund" or the content/timing of the statement are Not stated in the document. The provision is placed under the heading "PENALTIES" in both sources.

Statutory Provision Mode

Text & Scope

Coverage: The provision applies to "any eligible investment fund" that is required to furnish a statement or any information or document under the referenced provision (Clause: section 9(12)(e) [section 9A(5)]; Section: paragraph 4 of Schedule I). The penalty is a fixed sum of five lakh rupees (Rs.500000). The income-tax authority prescribed under the referenced provision is empowered to "direct that such fund shall pay, by way of penalty, a sum of five lakh rupees." The trigger element is failure to furnish within the time prescribed under the referenced provision.

Interpretation

Legislative intent and interpretive principles indicated by the text: The plain text signals a strict, fixed-quantum sanction intended to ensure compliance by eligible investment funds with reporting obligations. The use of the phrase "may direct" indicates discretion in the prescribed income-tax authority to impose the penalty upon a finding of failure to furnish. There is no express provision in the clause about stages of notice, opportunity to explain, mitigation, or discretionary factors-such procedural or mitigating mechanisms are Not stated in the document. The text ties the imposition to the time prescribed under the referenced provision, so timeliness is the operative compliance parameter.

Exceptions/Provisos

No provisos, carve-outs, thresholds, or exceptions appear in the textual extract provided. Any exceptions or conditions (for example, due cause, reasonable cause, or reduction mechanisms) are Not stated in the document.

Illustrations

  • Example 1: An eligible investment fund required by the referenced provision to submit an annual statement by a specified date fails to furnish the statement by that date. Under the provision, the prescribed income-tax authority may direct payment of five lakh rupees as penalty. (Derived strictly from the text.)
  • Example 2: An eligible investment fund provides partial information but omits a required document and does not submit it within the prescribed time. Subject to interpretation of what constitutes "failure to furnish," the prescribed income-tax authority may impose the fixed penalty. (The document does not elaborate on partial compliance or materiality thresholds.)

Interplay

Interaction with Rules/Notifications/Circulars mentioned in the document: Not stated in the document. The provision cross-references another statutory provision (sections or schedule) which presumably sets out the detailed reporting obligation and may prescribe the income-tax authority and timelines; however, the content of that provision is Not stated in the document. There is no mention of procedural rules, appeal routes or interaction with general penalty provisions of the Act in the excerpt provided.

Differences Between the Two Provisions and Practical Impact

  • Textual placement and cross-reference: Section 456 (Income-tax Act, 2025) refers to "paragraph 4 of Schedule I" as the source of the duty to furnish a statement/information/document; Clause 456 (Income Tax Bill, 2025 - Old Version) refers to "section 9(12)(e) [section 9A (5)]."
    • Practical impact: the operative obligation and the identity of the income-tax authority empowered to impose the penalty are tied to different provisions depending on which text applies. This alters the statutory hook for scope, procedures, timelines and potentially the class of entities captured, depending on how paragraph 4 of Schedule I versus section 9(12)(e)/9A(5) define "eligible investment fund" and reporting requirements. The document does not specify the substantive differences between those cross-referenced provisions. (Not stated in the document.)
  • Authority description: Section 456 says "the income-tax authority prescribed under the said paragraph" while Clause 456 says "the income-tax authority prescribed under the said section."
    • Practical impact: functionally similar language but depends on whether the prescribing provision is in a Schedule or a Section-this may affect interpretive approach to delegated prescription and internal cross-references in the statute. (Not stated in the document whether any different authorities are in fact prescribed.)

Practical Implications

  • Compliance and risk areas: Eligible investment funds must identify whether they fall within the scope of the referenced reporting provision (section 9(12)(e)/9A(5) or paragraph 4 of Schedule I as applicable) and must ensure timely submission of the required statements/information/documents. Non-furnishing within prescribed time may attract a fixed penalty of five lakh rupees.
  • Record-keeping/evidence points: While the provision does not specify records, it implies a need for funds to maintain clear evidence of timely filing and communications with tax authorities (filing receipts, courier/tracking records, email acknowledgements), since timeliness is the key d'eclencheur of the penalty. The document does not prescribe particular forms or documentary standards.

Key Takeaways

  • The provision creates a fixed monetary penalty (Rs.500,000 / five lakh rupees) for eligible investment funds that fail to furnish required statements/information/documents within prescribed time.
  • The Bill (old version) and the Act text differ primarily in the cross-reference point: the Bill ties the duty to section 9(12)(e)/9A(5), while the Act text ties it to paragraph 4 of Schedule I.
  • The sanction is discretionary ("may direct") in the hands of the prescribed income-tax authority; procedural safeguards (notice, opportunity to explain) are Not stated in the document.
  • No exceptions, mitigating factors, or alternative penalty scales are provided in the excerpt; the penalty is an absolute fixed sum as drafted.
  • Operational effect depends on the substantive scope and timelines in the provision to which this penalty is linked; those substantive details are Not stated in the document.
  • The minor textual differences in numeric versus spelled-out amount do not change the quantum; the crucial change is the statutory cross-reference location.

Full Text:

Section 456 Penalty for failure to furnish statement or information or document by an eligible investment fund.

Topics

Acts Income Tax