Section 446 — Penalty for failure to furnish information or for furnishing inaccurate information on transaction of crypto-asset

Old Act equivalent: Section 271AAE (new) of IT Act 1961 Sub-part: A—Penalties

Statutory Text

(1) If any person who is required to furnish a statement in respect of a trans- action of a crypto-asset under section 509(1), fails to furnish such statement within the time prescribed under the said section, the prescribed income-tax authority under that section may impose on him, a penalty of 200 for every day for which such failure continues. (2) The prescribed income-tax authority may impose a penalty of 50000 on a person referred in sub-section (1), if such person—

(a) provides inaccurate information in the statement and fails to remove such inaccuracy as per section 509(4); or

(b) fails to comply with due diligence the requirement under section 509(5).] Penalty for failure to furnish report under section 172.

None.

None.

None.

Applies to: Person required to furnish information on crypto-asset transactions who fails or furnishes inaccurate information.
Conditions: Failure to furnish information or furnishing inaccurate information on crypto-asset transactions.
Time limits: None specified.
Monetary limits: As prescribed.
Exceptions: Inserted by Finance Act, 2026.