Income Tax Act 2025: Section 456 for Tax Year 2026-27

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

[Section-456 as per the Income Tax Act, 2025 (this Act) w.e.f. 1st April, 2026.]

If any eligible investment fund required to furnish a statement or any information or document under section 9(12)(e) [section 9A (5)], fails to do so within the time prescribed under that section, the income-tax authority prescribed under the said section may direct that such fund shall pay, by way of penalty, a sum of five lakh rupees.

FAQs on Section 456 of Income Tax Act 2025

What is Section 456 of the Income Tax Act, 2025 about?
Section 456 deals with the penalty for failure by an eligible investment fund to furnish a required statement or information or document as mandated under section 9(12)(e).

Who is required to comply with Section 456?
An eligible investment fund that is obligated to furnish a statement or any information or document under section 9(12)(e) must comply with Section 456.

What triggers the penalty under Section 456?
The penalty is triggered if the eligible investment fund fails to furnish the required statement, information, or document within the time prescribed under section 9(12)(e).

What is the amount of penalty imposed under Section 456?
The penalty is a fixed sum of five lakh rupees.

Who imposes the penalty under Section 456?
The income-tax authority prescribed under section 9(12)(e) has the authority to direct the fund to pay the penalty.

From when is Section 456 applicable?
Section 456 is applicable with effect from 1st April, 2026.

Is the penalty under Section 456 discretionary or mandatory?
The penalty is imposed at the direction of the prescribed income-tax authority, indicating that it is not automatic but based on authority’s decision.

Is there any relief mechanism or appeal provision mentioned in Section 456?
Section 456 itself does not mention any relief or appeal mechanism; such provisions may be available elsewhere in the Act.

Does Section 456 provide for separate penalties for each default or delay?
Section 456 specifies a lump sum penalty of five lakh rupees for failure, without mention of per-day or per-instance penalties.

Does Section 456 apply to delays or only to complete non-filing?
The section applies to any failure to furnish within the prescribed time, which may include delays as well as complete non-filing.