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

Section 271J of Income Tax Act 1961 amended by Finance Act. Penalty for furnishing incorrect information in reports or certificates.

Amended and updated notes on section 271J 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 furnishing incorrect information in reports or certificates.

Chapter XXI (Sections 270A to 275) of the Income Tax Act 1961 deals with the provisions related to penalties imposable. Section 271J of IT Act 1961 provides for Penalty for furnishing incorrect information in reports or certificates.

Recently, we have discussed in detail section 271-I (Penalty for failure to furnish information or furnishing inaccurate information under section 195) of IT Act 1961. Today, we learn the provisions of section 271J of Income-tax Act 1961. The amended provision of section 271J 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 271J 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-271J: Penalty for furnishing incorrect information in reports or certificates

Without prejudice to the provisions of this Act, where the Assessing Officer or the Commissioner (Appeals), in the course of any proceedings under this Act, finds that an accountant or a merchant banker or a registered valuer has furnished incorrect information in any report or certificate furnished under any provision of this Act or the rules made thereunder, the Assessing Officer or the Commissioner (Appeals) may direct that such accountant or merchant banker or registered valuer, as the case may be, shall pay, by way of penalty, a sum of ten thousand rupees for each such report or certificate.

Explanation: For the purposes of this section,—

  • (a) “accountant” means an accountant referred to in the Explanation below sub-section (2) of section 288;
  • (b) “merchant banker” means Category I merchant banker registered with the Securities and Exchange Board of India established under section 3 of the Securities and Exchange Board of India Act, 1992 (15 of 1992);
  • (c) “registered valuer” means a person defined in clause (oaa) of section 2 of the Wealth-tax Act, 1957 (27 of 1957).


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