Penalty for failure to comply with the provisions of section 397(1)
[Section-468 as per the Income Tax Act, 2025 (this Act) w.e.f. 1st April, 2026.]
Section 468(1) of Income Tax Act 2025
468(1) If a person fails to comply with the provisions of section 397, the Assessing Officer may impose a penalty of ten thousand rupees on him.
Section 468(2) of Income Tax Act 2025
468(2) If a person, required to quote his Tax Deduction and Collection Account Number in documents (such as challans, certificates, or statements) referred to in section 397(1)(b), quotes a number which is false, knowing or believing it to be false, the Assessing Officer may impose a penalty of ten thousand rupees on him.
FAQs on Section 468 of Income Tax Act 2025
What is the penalty for failure to comply with Section 397(1) of the Income Tax Act, 2025?
If a person fails to comply with the provisions of Section 397, the Assessing Officer may impose a penalty of ten thousand rupees.
Who has the authority to impose the penalty under Section 468(1)?
The Assessing Officer has the authority to impose the penalty for non-compliance with Section 397.
Is the penalty under Section 468(1) mandatory?
The penalty is discretionary; the Assessing Officer “may” impose it, indicating that the imposition depends on the circumstances of each case.
What happens if someone quotes a false Tax Deduction and Collection Account Number (TDCAN)?
If a person, required to quote his TDCAN in documents under Section 397(1)(b), quotes a number that is false and he knows or believes it to be false, the Assessing Officer may impose a penalty of ten thousand rupees under Section 468(2).
Does the penalty under Section 468(2) require proof of knowledge or belief that the TDCAN was false?
Yes, the penalty under Section 468(2) applies only if the person knew or believed that the number quoted was false.
Which documents require quoting the Tax Deduction and Collection Account Number as per Section 397(1)(b)?
Documents such as challans, certificates, or statements as specified in Section 397(1)(b) require quoting the TDCAN.
Can both penalties under Section 468(1) and 468(2) be levied on the same person?
Yes, if a person both fails to comply with Section 397 and quotes a false TDCAN knowingly, separate penalties under both sub-sections can be imposed.
What is the amount of penalty specified under both sub-sections of Section 468?
A penalty of ten thousand rupees is specified under both Section 468(1) and 468(2).
From when is Section 468 applicable?
Section 468 is applicable from 1st April, 2026, as per the Income Tax Act, 2025.
Is there any provision for appeal or relief against the penalty imposed under Section 468?
The Act does not specify such provisions in Section 468 itself, but general appeal and relief mechanisms under other sections of the Act may be applicable.
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