Chapter XXI of the Income-tax Act, 2025 — Penalties

What this chapter does

Section 439 is the successor to section 270A of the 1961 Act and carries the under-reporting and misreporting penalty; section 440 the immunity provision. Sections 441 to 468 carry the specific penalties: books of account, transfer pricing documentation, false entries, benefits to related persons, failure to deduct or collect at source, the cash-transaction provisions in Chapter XII, statements of financial transaction, and reports on international groups. Section 469 carries the power to reduce or waive, and section 470 the general provision that a penalty is not to be imposed in certain cases.

What to watch

• Section 470 is the modern home of the reasonable-cause defence and is pleaded far less often than it should be.
• Section 446 is new in substance: a penalty aimed specifically at crypto-asset transaction reporting.

The sections in this chapter

• Section 439 — Penalty for under-reporting and misreporting of income read in full
• Section 440 — Immunity from imposition of penalty, etc
• Section 441 — Failure to keep, maintain or retain books of account, documents, etc
• Section 442 — Penalty for failure to keep and maintain information and document, etc , in respect of certain transactions
• Section 443 — Penalty in respect of certain income
• Section 444 — Penalty for false entry, etc , in books of account
• Section 445 — Benefits to related persons
• Section 446 — Penalty for failure to furnish information or for furnishing inaccurate information on transaction of crypto-asset
• Section 447 — Penalty for failure to furnish report under section 172
• Section 448 — Penalty for failure to deduct tax at source
• Section 449 — Penalty for failure to collect tax at source
• Section 450 — Penalty for failure to comply with provisions of section 185
• Section 451 — Penalty for failure to comply with provisions of section 186
• Section 452 — Penalty for failure to comply with provisions of section 187
• Section 453 — Penalty for failure to comply with provisions of section 188
• Section 454 — Penalty for failure to furnish statement of financial transaction or reportable account
• Section 455 — Penalty for furnishing inaccurate statement of financial transaction or reportable account
• Section 456 — Penalty for failure to furnish statement or information or document by an eligible investment fund
• Section 457 — Penalty for failure to furnish information or document under section 171
• Section 458 — Penalty for failure to furnish information or document under section 506
• Section 459 — Penalty for failure to furnish report or for furnishing inaccurate report under section 511
• Section 460 — Penalty for failure to submit statement under section 505
• Section 461 — Penalty for failure to furnish statements, etc
• Section 462 — Penalty for failure to furnish information or furnishing inaccurate information under section 397(3)(d)
• Section 463 — Penalty for furnishing incorrect information in reports or certificates
• Section 464 — Penalty for failure to furnish statements, etc
• Section 465 — Penalty for failure to answer questions, sign statements, furnish information, returns or statements, allow inspections, etc
• Section 466 — Penalty for failure to comply with the provisions of section 254
• Section 467 — Penalty for failure to comply with the provisions of section 262
• Section 468 — Penalty for failure to comply with the provisions of section 397
• Section 469 — Power to reduce or waive penalty, etc., in certain cases
• Section 470 — Penalty not to be imposed in certain cases
• Section 471 — Procedure
• Section 472 — Bar of limitation for imposing penalties