Penalty for failure to submit statement under section 505
[Section-460 as per the Income Tax Act, 2025 (this Act) w.e.f. 1st April, 2026.]
If a person required to furnish statement under section 505, fails to do so within the period prescribed under that section, the Assessing Officer may impose on him, a penalty of—
- (a) one thousand rupees for every day for which the failure continues, if the period of failure does not exceed three months; or
- (b) one lakh rupees in any other case.
FAQs on Section 460 of Income Tax Act 2025
What is the penalty under Section 460 for not submitting the statement required under Section 505?
If a person fails to submit the statement under Section 505 within the prescribed period, the Assessing Officer may impose a penalty under Section 460.
How much is the penalty if the failure to submit the statement continues but does not exceed three months?
The penalty is one thousand rupees for every day the failure continues, provided the period of failure does not exceed three months.
What is the penalty if the failure continues beyond three months?
In that case, a lump sum penalty of one lakh rupees may be imposed.
Who has the authority to impose the penalty under Section 460?
The Assessing Officer has the authority to impose the penalty for failure under this section.
Is the penalty under Section 460 automatic or discretionary?
The imposition of the penalty is at the discretion of the Assessing Officer.
Does Section 460 apply to failures under any other section besides Section 505?
No, Section 460 specifically applies to failures to submit the statement as required under Section 505.
Can the penalty under Section 460 be reduced or waived?
The section does not mention waiver or reduction, but general provisions of the Act related to reasonable cause or relief from penalties may apply depending on the circumstances.
When does Section 460 come into effect?
Section 460 is effective from 1st April, 2026.
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