Section 271D of Income Tax Act for AY 2023-24

Section 271D of Income Tax Act 1961 amended by Finance Act and IT Rules. Penalty for failure to comply with the provisions of section 269SS.

Amended and updated notes on section 271D of Income Tax Act 1961 as amended by the Finance Act 2022 and Income-tax Rules, 1962. Detail discussion on provisions and rules related to Penalty for failure to comply with the provisions of section 269SS.

Chapter XXI (Sections 270A to 275) of the Income Tax Act 1961 deals with the provisions related to penalties imposable. Section 271D of IT Act 1961 provides for Penalty for failure to comply with the provisions of section 269SS.

Recently, we have discussed in detail section 271CA (Penalty for failure to collect tax at source) of IT Act 1961. Today, we learn the provisions of section 271D of Income-tax Act 1961. The amended provision of section 271D is effective for financial year 2020-21 relevant to the assessment year 2021-22.

In this article, you will learn detail of the provisions of section 271D of the Income Tax Act, 1961 Bare Act read with the Income-tax Rules, 1962 as provided by Ministry of Law and Justice, Government of India.

Section-271D: Penalty for failure to comply with the provisions of section 269SS

Section 271D(1) of Income Tax Act

If a person takes or accepts any loan or deposit or specified sum in contravention of the provisions of section 269SS, he shall be liable to pay, by way of penalty, a sum equal to the amount of the loan or deposit or specified sum so taken or accepted.

Section 271D(2) of Income Tax Act

Any penalty imposable under sub-section (1) shall be imposed by the Joint Commissioner.


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