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

Section 271DB of Income Tax Act amended by Finance Act and Income-tax Rules. Penalty for failure to comply with provisions of section 269SU.

Amended and updated notes on section 271DB 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 provisions of section 269SU.

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

Recently, we have discussed in detail section 271DA (Penalty for failure to comply with provisions of section 269ST) of IT Act 1961. Today, we learn the provisions of section 271DB of Income-tax Act 1961. The amended provision of section 271DB is effective for financial year 2022-23 relevant to the assessment year 2023-24.

In this article, you will learn detail of the provisions of section 271DB 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-271DB: Penalty for failure to comply with provisions of section 269SU

Section 271DB(1) of Income Tax Act

If a person who is required to provide facility for accepting payment through the prescribed electronic modes of payment referred to in section 269SU, fails to provide such facility, he shall be liable to pay, by way of penalty, a sum of five thousand rupees, for every day during which such failure continues:

Provided that no such penalty shall be imposable if such person proves that there were good and sufficient reasons for such failure.

Section 271DB(2) of Income Tax Act

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


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