income tax act and law

income tax act and law

• 2.
   Failure tofile return, not furnishing the return in specified period or not disclosing full income in case of search [158 BFA(2)] ◦ Mini 100% , Max 300% of tax sought to be evaded  Penalty on tax in default [221(1)] ◦ Not exceeding tax in arrears  Failure to comply with notices (to get accounts audited, to produce documents, produce evidence) [271(1)(b)] ◦ Rs 10,000  Concealment or inaccurate particulars of income [271(1)(c)] ◦ Mini 100% , Max 300% of tax sought to be evaded
• 3.
   Wrong distributionof profits of registered firm [271(4)] ◦ Up to 150% of Tax sought to be evaded  Failure to maintain or retain accounts, documents [271A] ◦ Rs 25,000  Penalty where search has been initiated on or after 1-jun-2007 [271AAA] ◦ 10% of undisclosed income  Failure to get accounts audited [271B] ◦ .5% of turnover, sales, gross receipts etc or Rs 1 Lakh whichever is less  Failure to deduct tax at source [271C] ◦ Equal to tax not deducted
• 4.
   Penalty forfailure to collect tax at source [271CA] ◦ Equal to tax not collected  Failure to take or accept loan/deposit (greater than Rs 20,000) by cheque or draft [271D] ◦ Equal to amount of deposit of loan  Failure to repay loan/deposit (greater than Rs 20,000) by cheque or draft [271E] ◦ Equal to amount of deposit or loan so re-paid  Failure to furnish return of income [271F] ◦ Rs 5,000
• 5.
   Failure tofile return of fringe benefits [271FB] ◦ Rs 100 per day of default  Failure to answer questions, sign statements, allow inspection [272A(1)] ◦ Rs 10,000 for each default  Failure regarding tax deduction and tax collection account number [272B] ◦ Rs 10,000  Failure to furnish annual information return for special transactions(u/s 285BA) [272BB] ◦ Rs 100 per day of default
• 6.
   Contravention oforder u/s 132(3), not to remove books of accounts, money, jewellery etc without permission of authorized officer [275A] ◦ Fine and imprisonment up to 2 years  Failure to provide officer necessary facilities to inspect accounts or documents [275B] ◦ Fine and imprisonment up to 2 years  Removal, concealment, transfer or delivery of property to thwart tax recovery [276] ◦ Fine and imprisonment up to 2 years
• 7.
   Transfer ofproperty greater than 5 lakh without complying with provisions [276AB] ◦ Fine and imprisonment of 3 months to 7 years  Failure to pay the tax deducted at source [276B] ◦ Fine and imprisonment of 3 months to 7 years  Failure to pay the tax collected at source [276BB] ◦ Fine and imprisonment of 3 months to 7 years  Willful attempt to evade tax(false book entries, omission of entries etc) [276C] ◦ For amount > 1 lakh , fine and imprisonment of 6 months to 7 years, in other cases 3 months to 3 years
• 8.
   Failure tofurnish return of income in search cases [276CC] ◦ If tax evaded > 1 lakh , fine and imprisonment of 6 months to 7 years, in other cases 3 months to 3 years  Failure to furnish return of income [276CCC] ◦ Fine and imprisonment of 3 months to 3 years  Failure to produce accounts and documents [276D] ◦ Rs 4 to 10 per day and imprisonment of up to 1 year  False statement in verification [277] ◦ If tax evaded > 1 lakh , fine and imprisonment of 6 months to 7 years, in other cases 3 months to 3 years
• 9.
   Upon liquidationof company, failure to give notice to assessing officer in 30 days, set aside money for tax liabilities or parting with assets of company in contravention on Sec 178(3) [276A] ◦ Imprisonment of 6 months to 2 years  Abetment of false returns [278] ◦ If tax evaded > 1 lakh , fine and imprisonment of 6 months to 7 years, in other cases 3 months to 3 years  Punishment for second and subsequent offences in section 276B,276C,276CC,277 or 278 ◦ Fine and imprisonment of 6 months to 2 years  Disclosure of particulars by public servants [280(1)] ◦ Fine and imprisonment of 6 months
• 10.
   Offences bycompanies [278B] ◦ Liability will be of Managing Director of any such officer who has willfully committed the offense  Offences by Hindu undivided families [278C] ◦ Liability will be of Karta of any such member who has willfully committed the offense