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GST Jurisdiction

PENALTIES, INTEREST & CONSEQUENCES — INCOME TAX ACT, 1961

FY 2026-27

Section Nature of Default Rate / Amount Period / Basis Who Liable How to Avoid
Sec 234A Late filing of ITR 1% per month (simple interest) From due date to date of filing All assessees File ITR before due date
Sec 234B Non-payment of advance tax (< 90%) 1% per month (simple interest) From Apr 1 of AY to date of assessment All assessees Pay advance tax timely
Sec 234C Deferral of advance tax installments 1% per month (simple interest) 3 months (1st/2nd installment) or 1 month (final) All assessees Pay correct installments
Sec 234E Late filing of TDS/TCS returns ₹200 per day From due date till filing (max = TDS/TCS amount) TDS/TCS deductors File quarterly returns on time
Sec 234F Late filing of ITR (Belated Return) ₹5,000 (income > ₹5L)
₹1,000 (income < ₹5L)		 One-time penalty Individuals/HUF File original ITR before due date
Sec 234G Late filing of Form 10B/10BB ₹200 per day From due date to filing Charitable trusts/institutions File audit forms timely
Sec 271(1)(b) Failure to comply with notice Up to ₹10,000 Per notice/per default Noticees Respond to IT dept. notices
Sec 271(1)(c) Concealment of income / furnishing inaccurate particulars 100%–300% of tax sought to be evaded On concealed income All assessees Disclose income correctly
Sec 271A Failure to maintain books of accounts ₹25,000 Per year Required taxpayers Maintain books u/s 44AA
Sec 271AA Failure to maintain/furnish TP documentation 2% of transaction value Per default TP assessees Maintain TP documentation
Sec 271B Failure to get accounts audited (44AB) 0.5% of turnover/gross receipts or ₹1,50,000 (whichever lower) Per year Required audit taxpayers Get audit done before due date
Sec 271BA Failure to file Form 3CEB (TP) ₹1,00,000 Per year TP assessees File Form 3CEB before ITR
Sec 271C Failure to deduct TDS at source 100% of TDS amount Per default Deductors Deduct & deposit TDS correctly
Sec 271CA Failure to collect TCS 100% of TCS amount Per default Collectors Collect & deposit TCS correctly
Sec 271FA Failure to file SFT / Form 61A ₹500/day (before notice)
₹1,000/day (after notice)		 Till filing Specified reporting entities File SFT by 31st May
Sec 271H Incorrect TDS/TCS return ₹10,000 to ₹1,00,000 Per return TDS/TCS deductors File correct return (no penalty if self-corrected within 1 yr)
Sec 272A Failure to issue TDS certificate ₹100 per day Till certificate issued (max = TDS amount) Deductors Issue Form 16/16A within due dates
Sec 276B Prosecution for TDS default Rigorous imprisonment 3 months–7 years + fine Criminal prosecution Deductors/responsible persons Deposit TDS on time
Sec 276CC Prosecution for failure to file ITR Rigorous imprisonment 6 months–7 years + fine Criminal prosecution Required filers File ITR on time (minimum 3 yrs if tax > ₹25L)
Sec 201(1A) Interest on late TDS deposit 1% per month (deduction to deposit)
1.5% per month (after due date)		 From deduction/due date to payment Deductors Deposit TDS by 7th of next month