Penalty for failure to keep and maintain information and document, etc., in respect of certain transactions
[As per the Income Tax Act, 2025 (this Act) w.e.f. 1st April, 2026.]
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.