Penalty List Under the Income Tax Act 2025: Complete Table of Penalties (Sections 441 to 468)

The Income Tax Act 2025 lists most of its procedural and reporting penalties in sections 441 to 468. Some are a fixed sum (Rs 10,000 for a PAN default under section 467), some run per day (Rs 1,000 a day under section 454, capped at Rs 1,00,000), and some equal the amount involved (the tax not deducted under section 448). This guide puts them in one place, as amended by the Finance Act, 2026 with effect from 1 April 2026.

Penalty for under-reporting or misreporting of income (section 439) and the related waiver provisions (sections 440 and 469) are separate topics and are not covered here. Every figure below is taken from the Act text, with the section number beside it so you can check it. Last reviewed on 10 November 2026.

How are penalties measured under the Income Tax Act 2025?

Each penalty in this range is measured in one of four ways. Knowing which one applies tells you how fast the exposure grows.

What is the complete list of penalties in sections 441 to 468?

The tables below group the sections by subject. "May impose" means the authority has discretion. "Shall" language appears in a few places and is noted. Who imposes the penalty is named only where it matters.

Books, records and false entries

Section	Default	Penalty
441	Not keeping and maintaining books of account and documents as required by section 62 and the rules, or not retaining them for the period in the rules	Rs 25,000
444(1)	A false entry, or omission of an entry relevant to computing total income, in the books of any person, to evade tax	Equal to the aggregate amount of the false or omitted entry
444(2)	Any other person who causes that false entry or omission	Equal to the aggregate amount of the false or omitted entry

Transfer pricing and cross-border reporting

Section	Default	Penalty
442(1)	For an international or specified domestic transaction: not keeping information and documents required by section 171(1), not reporting the transaction, or keeping or furnishing incorrect information	2% of the value of each such transaction
442(2)	Not furnishing the information and document required under section 171(4)	Rs 5,00,000
457	Not furnishing information or document required under section 171(2) for an international or specified domestic transaction	2% of the value of the transaction, for each failure
458	An Indian concern not furnishing information or document under section 506	(a) 2% of the transaction value where the transaction transferred, directly or indirectly, the right of management or control of the concern; (b) Rs 5,00,000 in any other case
459(1)	A reporting entity under section 511 not furnishing the required report	(a) Rs 5,000 a day if the failure does not exceed one month; (b) Rs 15,000 a day for every day beyond one month
459(2)	Not producing information and documents within the period under section 511(7)	Rs 5,000 a day from the day after the period expires
459(3)	The failure continues after a penalty order under 459(1) or (2) is served	Rs 50,000 a day from the date of service of the order
459(4)	Inaccurate information in the section 511 report, in the three situations set out in 459(4)(a) to (c)	Rs 5,00,000

TDS and TCS

Section	Default	Penalty
448	Not deducting the whole or part of tax required under Chapter XIX-B, or not paying (or ensuring payment of) tax as required by Note 2 below the Table in section 393(3) or Note 6 to section 393(1) (Table Sl. No. 8)	Equal to the tax not deducted or paid
449	Not collecting the whole or part of tax required under Chapter XIX-B	Equal to the tax not collected
461(1)	Not delivering the statement under section 397(3)(b) on time, or furnishing incorrect information in it	Not less than Rs 10,000, up to Rs 1,00,000
462	Not furnishing information under section 397(3)(d), or furnishing inaccurate information	Rs 1,00,000
468(1)	Not complying with section 397	Rs 10,000
468(2)	Quoting a TAN in challans, certificates, statements or documents under section 397(1)(b) that is false, knowing or believing it to be false or not true	Rs 10,000

Loans, deposits and payments

Section	Default	Penalty
450	Taking or accepting a loan, deposit or specified sum in contravention of section 185	Equal to the amount so taken or accepted
451	Receiving a sum in contravention of section 186	Equal to the sum received
452	Not providing the facility to accept payments through the prescribed electronic modes, as referred to in section 187	Rs 5,000 for every day of the failure
453	Repaying a loan, deposit or specified advance otherwise than as section 188 allows	Equal to the amount repaid

Statements of financial transactions and crypto-assets

Section	Default	Penalty
446(1)	Not furnishing the crypto-asset transaction statement under section 509(1) on time	Rs 200 for every day the failure continues
446(2)	Inaccurate information in that statement not corrected as section 509(4) requires, or not complying with the due diligence requirement of section 509(5)	Rs 50,000
454	Not furnishing a statement of financial transaction or reportable account under section 508(1) within the period given in a notice under section 508(7)	Rs 1,000 a day from the day after the notice period ends, not exceeding Rs 1,00,000
455(1)	Inaccurate information in the section 508 statement and not furnishing correct information within the period under section 508(8), or not complying with the due diligence requirement of section 508(9)	Rs 50,000
455(2)	A reporting financial institution (section 508(1)(k)) furnishes an inaccurate statement because the account holder gave false or inaccurate information	In addition, Rs 5,000 for every inaccurate reportable account
460	Not furnishing the statement under section 505 within the prescribed period	(a) Rs 1,000 a day if the failure does not exceed three months; (b) Rs 1,00,000 in any other case
456	An eligible investment fund not furnishing a statement, information or document under paragraph 4 of Schedule I on time	Rs 5,00,000

Charities and non-profits

Section	Default	Penalty
445(a)	A registered non-profit organisation with specified income chargeable under section 337 (Table Sl. No. 2) applies income for the benefit of a related person referred to in section 355(h); first time noticed in a tax year	A sum equal to the income so applied
445(b)	The same violation noticed again in a later tax year	200% of the income so applied
464	A research association, university, college or other institution not delivering documents under section 45(4)(a); or an institution or fund not delivering a statement within the time under section 354(1)(e) or not furnishing a certificate under section 354(1)(g)	Not less than Rs 10,000, up to Rs 1,00,000

Reports, PAN and Aadhaar

Section	Default	Penalty
463	An accountant, merchant banker or registered valuer gives incorrect information in a report or certificate under the Act or rules	Rs 10,000 for each report or certificate
466	Not complying with section 254	Up to Rs 25,000
467(1)	Not complying with section 262	Rs 10,000
467(2)	Quoting a false PAN or Aadhaar number in a document referred to in section 262(9)(a), knowing or believing it to be false	Rs 10,000 for each default
467(3)	Not quoting or authenticating PAN or Aadhaar in a document referred to in section 262(9)(a)	Rs 10,000 for each default
467(4)	A person under section 262(9)(b), responsible for correct quoting or authentication, fails to ensure it	Rs 10,000 for each default

What does section 465 penalise?

Section 465 is the catch-all for non-cooperation and missed filings. It has two levels.

Rs 10,000 for each default (section 465(1)) if a person:

• refuses to answer a question put by an income-tax authority when legally bound to state the truth;
• refuses to sign a statement the authority may legally require them to sign;
• does not attend, or does not produce books or documents, after a summons under section 246(1); or
• does not comply with a notice under section 268(1) or 270(8), or a direction under section 268(5).

Rs 500 for every day the failure continues (section 465(2)) if a person fails to:

• comply with a notice under section 175(7);
• give notice of discontinuance of business or profession under section 320(3);
• furnish in due time returns, statements or particulars mentioned in section 252, 397(3) or 507;
• allow inspection of a register under section 255 or copies of its entries;
• furnish the return of income as section 263(1)(a)(iii) or (iv) requires, or within the time and manner in section 263(1) and (2);
• deliver in due time a copy of the declaration under section 393(7) or 394(3);
• furnish a certificate under section 395(4), deduct and pay tax under section 416(3), or furnish a statement under section 392(5)(a); or
• deliver the statements in section 397(3)(b), (e) or (g)(i) within the time specified or prescribed.

For the declaration under section 393(7), the certificate under section 395(4) and the statements under section 397(3)(b) or (e), the penalty cannot exceed the tax deductible or collectible (section 465(3)).

Section 465(4) says who imposes it. Broadly, it is the Joint Director or Joint Commissioner, the income-tax authority that issued the notice (for the 465(1)(d) cases), the Commissioner-level authorities for a missed declaration copy under 393(7), and an authority not below Joint Director or Joint Commissioner when the default occurs in a proceeding before it.

Which late-filing and audit defaults are a fee, not a penalty?

Late return, late audit report and missing accountant's report are not in the 441 to 468 range. Section 428 charges them as a "fee", without prejudice to other provisions of the Act.

Section 428	Default	Fee
(a)	Not furnishing the return under section 263 by the due date in section 263(1)	Rs 1,000 if total income is up to Rs 5,00,000; Rs 5,000 otherwise
(b)	Furnishing a return under section 263(5) beyond nine months from the end of the tax year	Same: Rs 1,000 or Rs 5,000
(c)	Not getting accounts audited and furnishing the report under section 63	Rs 75,000 for a delay up to one month; Rs 1,50,000 after that
(d)	Not furnishing the accountant's report under section 172	Rs 50,000 for a delay up to one month; Rs 1,00,000 after that

Can a penalty be avoided for reasonable cause, and how long does the department have?

Section 470 says no penalty is imposed under most sections in this list if the person proves there was a reasonable cause for the failure. It names sections 441, 442, 446, 448 to 463, 465(1)(c), 465(1)(d), 465(2), 466, 467 and 468. It does not name 444, 445, 464 or the other parts of 465(1), so do not assume the defence is available there.

Under section 471, a penalty order needs a hearing by show-cause notice, and prior Joint Commissioner approval where the penalty exceeds Rs 10,000 (Income-tax Officer) or Rs 20,000 (Assistant or Deputy Commissioner). Section 472(1) bars an order after six months from the end of the quarter in which the relevant proceedings are completed or, in other cases, the penalty notice is issued. Details are in our guide to penalty procedure and limitation.

What changed from 1 April 2026?

Section	Change by Finance Act, 2026 (Act No. 4 of 2026)
443	Omitted. It had provided a penalty of 10% of tax payable under section 195(1)(i) on certain income referred to in sections 102 to 106.
446	Substituted. It earlier dealt with failure to get accounts audited (the lesser of 0.5% of turnover or gross receipts, and Rs 1,50,000). It now covers crypto-asset statement defaults. An audit default now attracts the section 428(c) fee instead.
447	Omitted. It had provided Rs 1,00,000 for not furnishing an accountant's report under section 172.
454	Substituted. The earlier text had Rs 500 a day for a late statement and Rs 1,000 a day after a notice. Now the Rs 1,000 a day applies only after the notice period, with a cap of Rs 1,00,000.
466	Maximum raised from Rs 1,000 to Rs 25,000.
467	Now covers sections 262 and 397 in its heading. The Act text for this section deals with section 262 only; section 397 has its own penalty in section 468.

How is a per-day penalty calculated? Worked examples

All examples use tax year 2026-27 and assume the penalty is imposed at the full stated rate. In practice the authority has discretion where the section says "may".

Example 1: Section 454, capped per-day penalty. A bank branch received a notice under section 508(7) asking it to furnish a statement of financial transaction within 30 days. It furnished the statement 40 days after the notice period ended.

Step	Working
Days of continuing failure after the notice period	40
Rate	Rs 1,000 a day
Penalty	40 x Rs 1,000 = Rs 40,000
Cap check	Rs 40,000 is below Rs 1,00,000, so the cap does not bite. It would bite from day 100.

Example 2: Section 465(2), failure to give notice of discontinuance. Meena closed her consultancy and did not give the Assessing Officer the notice of discontinuance that section 320(3) requires within fifteen days of discontinuing. She filed it 22 days after that deadline.

Step	Working
Rate	Rs 500 for every day
Days of default (after the 15-day deadline)	22
Penalty	22 x Rs 500 = Rs 11,000

How is a penalty equal to the tax or amount calculated?

Example 3: Section 448, tax not deducted. A company in tax year 2026-27 paid a vendor and should have deducted tax of Rs 45,000 under Chapter XIX-B. It deducted nothing.

Step	Working
Tax required to be deducted	Rs 45,000
Tax actually deducted	Nil
Penalty under section 448	Equal to the tax not deducted = Rs 45,000

If the company had deducted Rs 30,000 of the Rs 45,000, the penalty is on the part not deducted: Rs 15,000.

Example 4: Section 442(1), 2% of transaction value. A company entered into an international transaction of Rs 3,00,00,000 in tax year 2026-27 and did not keep the documents required by section 171(1).

Step	Working
Value of the transaction	Rs 3,00,00,000
Rate	2%
Penalty	Rs 3,00,00,000 x 2% = Rs 6,00,000

If the company entered into two such transactions and failed on both, the 2% applies to each transaction's value.

Example 5: Section 445, repeat violation by a non-profit. A registered non-profit organisation, with income chargeable under section 337 (Table Sl. No. 2), applied Rs 4,00,000 for the benefit of a related person in one tax year. The next year the violation was noticed again, with Rs 1,50,000 applied.

Year	Rule	Penalty
First noticed	Section 445(a): equal to the income applied	Rs 4,00,000
Noticed again	Section 445(b): 200% of the income applied	Rs 1,50,000 x 200% = Rs 3,00,000

Real-life scenarios

Ravi and the missing PAN. Ravi entered into transactions for which the rules require a PAN or Aadhaar number to be quoted and authenticated in the documents (section 262(9)(a)), and left it out of three documents. Under section 467(3), failing to quote or authenticate it can draw Rs 10,000 for each such default. For three documents, that is Rs 30,000. If instead Ravi had quoted a number he knew was false, section 467(2) applies at the same Rs 10,000 for each default.

Meena's supplier invoices. During an assessment, the officer found that Meena's books carried invoices from a supplier who did not exist, for Rs 8,00,000 in total. Section 444(3)(c) treats an invoice to or from a person who does not exist as a "false entry". The penalty under section 444(1) equals the aggregate false entries: Rs 8,00,000. A consultant who arranged the entries could face the same amount under section 444(2).

A small partnership that lost its ledgers. A partnership did not retain its books for the period the rules prescribe. Section 441 allows Rs 25,000 for failing to keep or retain them. The facts to check are the books and documents section 62 and the rules require for that tax year.

A distributor that never set up digital payments. A distributor with a turnover of Rs 60 crore in the previous tax year offered no prescribed electronic payment mode. Section 187 applies to businesses whose turnover exceeded Rs 50 crore in the immediately preceding tax year, and section 452 provides Rs 5,000 for every day the failure lasts. Over 10 days that adds up to Rs 50,000.

Are there situations where a penalty is not imposed?

Section 461(2) gives relief for a late or missed statement under section 461(1)(a). No penalty is levied for the delay or non-filing if the person proves two things:

• the tax deducted or collected, along with the fee and any interest, was paid to the credit of the Central Government; and
• the statement was delivered before the expiry of one month from the time prescribed in section 397(3)(b).

This relief covers section 461(1)(a) only. It does not cover furnishing incorrect information under 461(1)(b).

Section 465(3) also caps the penalty at the tax deductible or collectible for missed declarations, certificates and statements of the kind listed there.

What are the common mistakes with these penalties?

• Treating section 443, 446 (audit) and 447 as live penalties. Old checklists still list them. From 1 April 2026, 443 and 447 are omitted and 446 now deals with crypto-assets.
• Assuming every per-day penalty has a cap. Only section 454 states a Rs 1,00,000 ceiling. Sections 452, 465(2) and 460(a) state a daily amount and, in the text of those sections, no overall cap (460 moves to Rs 1,00,000 for longer failures).
• Ignoring the one-month window on TDS statements. Section 461(2) protects only if the tax, fee and interest are paid and the statement is delivered within one month of the due time.
• Confusing section 467 with section 468. PAN and Aadhaar defaults sit in 467. TAN defaults sit in 468.
• Missing that a helper can be penalised too. Section 444(2) reaches any person who causes a false or omitted entry, not only the person whose books were affected.
• Reading "may impose" as automatic. Sections like 441, 448 and 454 give the authority a discretion. Respond to the notice and put the reasons on record.

Quick reference: amounts at a glance

Penalty amount	Sections
Rs 200 a day	446(1)
Rs 500 a day	465(2)
Rs 1,000 a day (capped at Rs 1,00,000)	454
Rs 1,000 a day (up to 3 months), then Rs 1,00,000	460
Rs 5,000 a day	452, 459(1)(a), 459(2)
Rs 15,000 a day beyond one month	459(1)(b)
Rs 50,000 a day after a penalty order	459(3)
Rs 10,000 (fixed or per default)	463, 465(1), 467, 468
Rs 5,000 per inaccurate reportable account (in addition)	455(2)
Rs 10,000 to Rs 1,00,000	461(1), 464
Up to Rs 25,000	466
Rs 25,000	441
Rs 50,000	446(2), 455(1)
Rs 1,00,000	462
Rs 5,00,000	442(2), 456, 458(b), 459(4)
2% of transaction value	442(1), 457, 458(a)
Equal to the amount involved	444, 445(a), 448, 449, 450, 451, 453
200% of the income applied	445(b)

Where is this in the Act?

• Books of account: section 441 (with section 62); false entries: section 444
• Transfer pricing: sections 442, 457 (with section 171); section 458 (with section 506); section 459 (with section 511)
• TDS and TCS: sections 448, 449, 461, 462, 468 (with sections 393 and 397)
• Loans, deposits, payments: sections 450 to 453 (with sections 185 to 188)
• Financial transaction statements: sections 454, 455 (with section 508); crypto-assets: section 446 (with section 509); section 460 (with section 505); section 456 (Schedule I, paragraph 4)
• Non-profits: sections 445, 464 (with sections 337, 355, 45 and 354)
• Reports and certificates: section 463; PAN and Aadhaar: section 467 (with section 262); section 466 (with section 254)
• General non-cooperation and missed filings: section 465

How can CA firms keep track of these exposures?

Most of the penalties above start with a missed date or a missing document. Finexo's practice management software tracks deadlines and document requests across your client book and reminds you and your clients before the date passes. It does not decide whether a penalty applies or compute it for you. For a deductor-side view, see our guide to TDS on rent under the Income Tax Act 2025.

This article explains the Income Tax Act 2025 as amended by the Finance Act, 2026. It is general information, not tax advice. Whether a penalty is imposed depends on the facts, the notice issued and the authority's order. Confirm the position for a specific case with a qualified chartered accountant.