Income Tax Act 2025: Section 453 for Tax Year 2025-26

Penalty for repaying loans/deposits against Section 188 rules: Fine equals the repaid amount if not compliant, per Income Tax Act 2025, Section 453.

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Penalty for failure to comply with provisions of section 188

[As per the Income Tax Act, 2025 (this Act) w.e.f. 1st April, 2026.]

If a person repays any loan or deposit or specified advance referred to in section 188 otherwise than in accordance with the provisions of that section, the Assessing Officer may impose on him, a penalty equal to the loan or deposit or specified advance so repaid.


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