Income Tax Act, 2025  ·  Chapter XX — Penalties  ·  Section 461

Section 461
Penalty for failure to furnish statements, etc

IT Act 2025 Chapter XX Effective 1 April 2026 Old: 271H
New Provision
Section 461, IT Act 2025
Replaces (IT Act 1961)
271H
Chapter
Chapter XX — Penalties
Effective From
1 April 2026
Statutory Text — Section 461

here a person, who is required to deliver or causes to be delivered a statement prescribed in section 397(3)(b),— (a) fails to do so within the time prescribed in the said section; or (b) furnishes incorrect information in the said statement, the Assessing Officer may impose on such person, a penalty of a sum which shall not be less than ₹10000 but which may extend to ₹100000. (2) No penalty shall be levied under sub-section (1)(a) for delay in filing or non-filing of statement referred therein, if the person proves that— (a) tax deducted or collected along with the fee and interest, if any, was paid to the credit of the Central Government; and (b) the said statement was also delivered or cause to be delivered before the expiry of one month from the time prescribed in section 397(3)(b).

Shahi & Co. — Our Understanding
This section falls under Chapter XX which prescribes penalties for various non-compliances under the Act.
Practical Note: Penalties under the Income Tax Act can be significant — often ranging from 50% to 200% of the tax amount involved. Voluntary disclosure and prompt correction of errors significantly reduces penalty exposure.
Shahi & Co., Chartered Accountants
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Disclaimer: This is a reproduction of Section 461 of the Income Tax Act, 2025 (No. 30 of 2025) as published in the Official Gazette of India (CG-DL-E-22082025-265620) for informational and reference purposes only. Shahi & Co., Chartered Accountants makes no warranty as to completeness or accuracy. For the official authenticated text refer to egazette.gov.in or incometaxindia.gov.in. This does not constitute legal or tax advice.