Amended and updated notes on section 271GA 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 furnish information or document under section 285A.
Chapter XXI (Sections 270A to 275) of the Income Tax Act 1961 deals with the provisions related to penalties imposable. Section 271GA of IT Act 1961 provides for Penalty for failure to furnish information or document under section 285A.
Recently, we have discussed in detail section 271G (Penalty for failure to furnish information or document under section 92D) of IT Act 1961. Today, we learn the provisions of section 271GA of Income-tax Act 1961. The amended provision of section 271GA 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 271GA 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-271GA: Penalty for failure to furnish information or document under section 285A
If any Indian concern, which is required to furnish any information or document under section 285A, fails to do so, the income-tax authority, as may be prescribed under the said section, may direct that such Indian concern shall pay, by way of penalty,—
(i) a sum equal to two per cent of the value of the transaction in respect of which such failure has taken place, if such transaction had the effect of directly or indirectly transferring the right of management or control in relation to the Indian concern;
(ii) a sum of five hundred thousand rupees in any other case.