Income Tax Act 2025: Section 462 for Tax Year 2026-27

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

[Section-462 as per the Income Tax Act, 2025 (this Act) w.e.f. 1st April, 2026.]

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.

FAQs on Section 462 of Income Tax Act 2025

What is Section 462 of the Income Tax Act, 2025 about?
Section 462 prescribes the penalty for failure to furnish information or furnishing inaccurate information as required under section 397(3)(d) of the Act.

Who is liable under Section 462?
Any person who is required to furnish information under section 397(3)(d) and fails to do so or furnishes inaccurate information is liable under this section.

What is the penalty amount under Section 462?
The penalty imposed by the Assessing Officer under this section is one lakh rupees.

Is the penalty under Section 462 mandatory or discretionary?
The penalty may be imposed by the Assessing Officer, indicating that it is discretionary based on the facts and circumstances of each case.

From which date is Section 462 effective?
Section 462 is effective from 1st April, 2026.

Does Section 462 apply if incorrect information is provided unintentionally?
The section does not explicitly differentiate between intentional and unintentional furnishing of inaccurate information. It simply states that furnishing inaccurate information may attract the penalty.

Can a person appeal against a penalty imposed under Section 462?
The Act does not specify appeal procedures in Section 462 itself, but general provisions related to appeals under the Income Tax Act, 2025 would apply.

Is there any opportunity given to the person before imposing the penalty under Section 462?
While Section 462 does not mention it directly, principles of natural justice would typically require that the person be given an opportunity of being heard before the Assessing Officer imposes a penalty.

Does the penalty under Section 462 apply in addition to other penalties in the Act?
Yes, the penalty under Section 462 is specific to the failure or inaccuracy under section 397(3)(d), and it may be in addition to any other penalties provided under the Act for different defaults.