Penalty for failure to keep and maintain information and document, etc., in respect of certain transactions
Section 442(1) of Income Tax Act 2025
(1) The Assessing Officer or Commissioner (Appeals) may impose a penalty of 2% of the value of each international transaction or specified domestic transaction entered into by a person, if in respect of such transaction he,—
(a) fails to keep and maintain any such information and document as required by section 171(1);
(b) fails to report such transaction as he is required to do so; or
(c) maintains or furnishes an incorrect information or document.
Section 442(2) of Income Tax Act 2025
(2) The prescribed income-tax authority referred to in section 171(4) may impose a penalty of five lakh rupees on a person, if he fails to furnish the information and document required under the said section.