Penalty for failure to furnish statements, etc.
[Section-464 as per the Income Tax Act, 2025 (this Act) w.e.f. 1st April, 2026.]
The Assessing Officer may impose a penalty which shall not be less than ten thousand rupees but which may extend up to one lakh rupees on—
- (a) the research association, University, college or other institution referred to in section 45, if it fails to deliver or furnish the documents as prescribed under section 45(4)(a); or
- (b) the institution or fund, if it fails to deliver or cause to be delivered a statement within the time prescribed under section 354(1)(e) or (f), or furnish a certificate prescribed under section 354(1)(g).
FAQs on Section 464 of Income Tax Act 2025
What is Section 464 of the Income Tax Act, 2025 about?
Section 464 deals with penalties imposed for failure to furnish statements, reports, or documents required under specific provisions of the Act.
Who can be penalized under Section 464?
Penalties can be imposed on research associations, universities, colleges, or other institutions referred to in section 45, as well as institutions or funds required to comply with section 354.
What are the prescribed requirements under section 45 that can lead to a penalty under Section 464?
A penalty can be imposed if a research association, university, college, or other institution fails to deliver or furnish documents as required under section 45(4)(a).
What are the requirements under section 354 that, if not met, attract a penalty under Section 464?
A penalty can be imposed if an institution or fund fails to deliver a statement within the time prescribed under section 354(1)(e) or (f), or fails to furnish a certificate as required under section 354(1)(g).
What is the minimum penalty under Section 464?
The minimum penalty is ten thousand rupees.
What is the maximum penalty that can be imposed under Section 464?
The maximum penalty is one lakh rupees.
Who has the authority to impose the penalty under this section?
The Assessing Officer is empowered to impose the penalty under Section 464.
Is the penalty under Section 464 discretionary or mandatory?
The penalty is discretionary within the specified range of ₹10,000 to ₹1,00,000, depending on the nature and extent of the failure.
Is an opportunity for hearing given before imposing penalty under Section 464?
While Section 464 itself doesn’t explicitly mention it, principles of natural justice typically require that the person be given an opportunity to be heard before a penalty is imposed.
Does Section 464 apply automatically upon failure to furnish required documents?
No, it applies upon the Assessing Officer’s discretion, and failure must be established under the relevant provisions of section 45 or 354.
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