Penalty for failure to furnish statement of financial transaction or reportable account after a notice

Section 454 — Penalty for failure to furnish statement of financial transaction or reportable account after a notice

Old Act equivalent: Section 271FA of IT Act 1961 Sub-part: A—Penalties

Statutory Text

454. Where any person, who is required to furnish a statement of financial trans- action or reportable account under section 508(1), fails to furnish such statement or reportable account within the period specified in the notice issued under section (1) If a person who is required to furnish a statement of financial transaction or reportable account under section 508(1), fails to furnish such statement within the time prescribed under sub-section (2) thereof, the income-tax authority prescribed under the said sub-section (1) may impose on him, a penalty of ` 500 for every day during which such failure continues.

     (2) If the person referred to in sub-section (1), fails to furnish the statement within the period specified in the notice issued under section 508(7), he shall pay penalty of ` 1000 for every day during which the failure continues, beginning from the day immediately after the time specified in such notice for furnishing the statement expires.”

508(7), the income-tax authority prescribed under section 508(1) may impose on him, a penalty of 1000 for every day for which such failure continues, beginning from the day immediately after the period specified in such notice for furnishing such statement or reportable account expires and such penalty shall not exceed 100000.] Penalty for furnishing inaccurate statement of financial transaction or reportable account.

Provisos

None.

Explanations

None.

Tables

None.

Key Structure

• Applies to: Person required to furnish SFT or reportable account statement who fails after notice.
• Conditions: Failure to furnish statement of financial transaction or reportable account within period specified in notice u/s 508(1).
• Time limits: Penalty runs from day after expiry of notice period.
• Monetary limits: Rs. 1,000 per day of continuing failure; maximum Rs. 1,00,000.
• Exceptions: None.

Cross-References

• Section 508

Amendment Notes

None noted from the extracted pages.

Practical Notes