Penalty for failure to furnish information return.

Section 123

If a person who is required to furnish an information return under section 150 fails to do so within the period specified in the notice issued under sub-section (3) thereof, the proper officer may direct that such person shall be liable to pay a penalty of one hundred rupees for each day of the period during which the failure to furnish such return continues:

Provided that the penalty imposed under this section shall not exceed five thousand rupees.

AI Explanation

In Section 123, it states that if a person fails to submit the required information return within the specified time given in the notice (issued under sub-section (3) of section 150), the proper officer can decide to impose a penalty. This penalty would be one hundred rupees for each day during which the failure to submit the return continues.

Penalty Limitation

However, there's a limit to the penalty. The total penalty under this section cannot go beyond five thousand rupees.

Consequences of Not Providing Information

When someone doesn't provide the necessary information return on time, they need to be aware that they might face financial penalties as outlined in Section 123. It's crucial to adhere to the specified timelines to avoid such consequences.

Ensuring Timely Submission

To steer clear of penalties, individuals must ensure they submit the required information return within the stipulated time frame mentioned in the notice. Being prompt in fulfilling this obligation can save them from unnecessary financial burdens.