Penalty for failure to comply with provisions of section 186
[Section-451 as per the Income Tax Act, 2025 (this Act) w.e.f. 1st April, 2026.]
The Assessing Officer may impose on a person, a penalty equal to the sum received by him in contravention of the provisions of section 186 except where he proves that there were good and sufficient reasons for the said contravention.
FAQs on Section 451 of Income Tax Act 2025
What does Section 451 of the Income Tax Act, 2025 deal with?
Section 451 deals with the penalty for failure to comply with the provisions of Section 186 of the Income Tax Act, 2025.
What is the penalty prescribed under Section 451?
The penalty is equal to the sum received by the person in contravention of Section 186.
Who can impose the penalty under Section 451?
The Assessing Officer is empowered to impose the penalty.
Can the penalty under Section 451 be waived?
Yes, the penalty may not be imposed if the person proves that there were good and sufficient reasons for the contravention.
What is meant by ‘contravention of the provisions of section 186’?
It refers to any act or omission by a person that violates the requirements laid out under Section 186 of the Act.
Is there any specific time limit for imposing penalty under Section 451?
Section 451 itself does not specify a time limit; general procedural timelines under the Act may apply.
Does the penalty under Section 451 apply automatically upon contravention?
No, it is subject to the satisfaction of the Assessing Officer and the opportunity for the person to explain reasons for the contravention.
From which date is Section 451 applicable?
Section 451 is applicable with effect from 1st April, 2026.
What happens if the person fails to justify the reasons for non-compliance with Section 186?
If the reasons are not considered good and sufficient by the Assessing Officer, the penalty equal to the amount received in contravention will be levied.
Is there any provision for appeal against the penalty under Section 451?
Yes, the person penalized may appeal under the general appeal provisions available in the Act.
Does Section 451 apply to both individuals and entities?
Yes, Section 451 can apply to any person, which includes individuals, companies, firms, and other legal entities.
Can the Assessing Officer levy a penalty less than the sum received?
No, the section specifically states that the penalty shall be equal to the sum received in contravention.
Refresh Page