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

Section 271GB of Income Tax Act amended by Finance Act. Penalty for failure to furnish report or for furnishing inaccurate report u/s 286.

Amended and updated notes on section 271GB 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 report or for furnishing inaccurate report under section 286.

Chapter XXI (Sections 270A to 275) of the Income Tax Act 1961 deals with the provisions related to penalties imposable. Section 271GB of IT Act 1961 provides for Penalty for failure to furnish report or for furnishing inaccurate report under section 286.

Recently, we have discussed in detail section 271GA (Penalty for failure to furnish information or document under section 285A) of IT Act 1961. Today, we learn the provisions of section 271GB of Income-tax Act 1961. The amended provision of section 271GB 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 271GB 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-271GB: Penalty for failure to furnish report or for furnishing inaccurate report under section 286

Section 271GB(1) of Income Tax Act

If any reporting entity referred to in section 286, which is required to furnish the report referred to in sub-section (2) of the said section, in respect of a reporting accounting year, fails to do so, the authority prescribed under that section (herein referred to as prescribed authority) may direct that such entity shall pay, by way of penalty, a sum of,—

  • (a) five thousand rupees for every day for which the failure continues, if the period of failure does not exceed one month; or
  • (b) fifteen thousand rupees for every day for which the failure continues beyond the period of one month.

Section 271GB(2) of Income Tax Act

Where any reporting entity referred to in section 286 fails to produce the information and documents within the period allowed under sub-section (6) of the said section, the prescribed authority may direct that such entity shall pay, by way of penalty, a sum of five thousand rupees for every day during which the failure continues, beginning from the day immediately following the day on which the period for furnishing the information and document expires.

Section 271GB(3) of Income Tax Act

If the failure referred to in sub-section (1) or sub-section (2) continues after an order has been served on the entity, directing it to pay the penalty under sub-section (1) or, as the case may be, under sub-section (2), then, notwithstanding anything contained in sub-section (1) or sub-section (2), the prescribed authority may direct that such entity shall pay, by way of penalty, a sum of fifty thousand rupees for every day for which such failure continues beginning from the date of service of such order.

Section 271GB(4) of Income Tax Act

Where a reporting entity referred to in section 286 provides inaccurate information in the report furnished in accordance with sub-section (2) of the said section and where—

  • (a) the entity has knowledge of the inaccuracy at the time of furnishing the report but fails to inform the prescribed authority; or
  • (b) the entity discovers the inaccuracy after the report is furnished and fails to inform the prescribed authority and furnish correct report within a period of fifteen days of such discovery; or
  • (c) the entity furnishes inaccurate information or document in response to the notice issued under sub-section (6) of section 286,

then, the prescribed authority may direct that such person shall pay, by way of penalty, a sum of five lakh rupees.


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