Penalty for failure to furnish information or furnishing inaccurate information under section 397 (3)(d).

462

If a person, who is required to furnish information under section 397 (3)(d), fails to furnish such information, or furnishes inaccurate information, the Assessing Officer may impose a penalty of one lakh rupees.

Explanation

Section Summary:

Section 462 of the new income tax law imposes a penalty on individuals or entities who fail to provide required information or provide inaccurate information under Section 397(3)(d). The penalty is set at ₹1 lakh and is imposed by the Assessing Officer.

Key Changes:

• Introduction of Penalty: This section introduces a specific penalty for non-compliance with the requirement to furnish information or for providing inaccurate information under Section 397(3)(d). Previously, such penalties might have been covered under general penalty provisions, but this section now explicitly addresses this specific scenario.
• Fixed Penalty Amount: The penalty amount is fixed at ₹1 lakh, providing clarity and consistency in enforcement.

Practical Implications:

• For Taxpayers and Businesses: Taxpayers and businesses must ensure that they provide accurate and complete information as required under Section 397(3)(d). Failure to do so will result in a fixed penalty of ₹1 lakh.
• For Assessing Officers: Assessing Officers now have a clear mandate to impose a penalty of ₹1 lakh in cases of non-compliance or inaccuracies in the information provided.

Critical Concepts:

• Section 397(3)(d): This section likely pertains to specific information that taxpayers are required to furnish, such as details related to transactions, income, or other financial data. The exact nature of the information required would be detailed in Section 397(3)(d).
• Assessing Officer: The tax authority responsible for assessing and determining the tax liability of a taxpayer. They have the authority to impose penalties under this section.

Compliance Steps:

1. Identify Required Information: Determine what information is required under Section 397(3)(d).
2. Ensure Accuracy: Verify that all information provided is accurate and complete.
3. Timely Submission: Submit the required information within the stipulated timeframe to avoid penalties.

Examples:

• Scenario 1: A business is required to furnish details of certain high-value transactions under Section 397(3)(d). If the business fails to provide this information, the Assessing Officer can impose a penalty of ₹1 lakh.
• Scenario 2: An individual provides inaccurate details about their foreign income under Section 397(3)(d). The Assessing Officer discovers the inaccuracy and imposes a penalty of ₹1 lakh.

This section emphasizes the importance of compliance with information disclosure requirements and introduces a clear penalty for non-compliance or inaccuracies.