CA HARSH GARG - My Tax Support

A Balanced Approach to Tax Penalties Under the Income Tax Act:- Complete Guide

The Income Tax Act, 1961, balances the imposition of penalties with principles of fairness to protect taxpayer rights while safeguarding government revenue. Penalties are a crucial tool to deter non-compliance and promote accountability, but their application requires judicial scrutiny

Important Case Laws Defining Penalties Under Income Tax Act

The Income Tax Act, 1961, has a robust framework for penalties and prosecutions to ensure compliance and deter tax evasion. Over the years, several landmark judicial decisions have shaped the interpretation and application of these provisions. Below, we explore

Section 271AAD Explained: New Rules for False Entries in Accounts

The Finance Act, 2023, introduced significant amendments to Section 271AAD of the Income Tax Act, which deals with penalties for false or omitted entries in books of accounts. These changes aim to deter fraudulent practices and ensure the integrity

How to Avoid Penalties for Under-Reporting or Misreporting Income

Section 270A of the Income Tax Act, 1961, provides for the imposition of penalties on taxpayers who under-report or misreport their income. This provision aims to promote transparency and discourage deliberate errors or omissions in income reporting. Below is

How to Avoid Penalties Under Section 272A for Non-Compliance

Section 272A of the Income Tax Act, 1961, prescribes penalties for failure to comply with various statutory obligations, such as responding to notices, summons, or furnishing information as required under the Act. This provision aims to enforce compliance and

Section 271C: Penalties for Failing to Fulfill TDS/TCS Responsibilities

Section 271C of the Income Tax Act, 1961, provides for penalties in cases where a person responsible for deducting or collecting tax at source (TDS/TCS) fails to do so. This provision ensures compliance with tax collection and deduction obligations,

How to Stay Compliant With Transfer Pricing Documentation Rules

Sections 271AA and 271G of the Income Tax Act, 1961, govern penalties for non-compliance in reporting and documentation requirements related to international transactions. These provisions aim to ensure transparency and compliance in transfer pricing regulations, which are critical for

What You Should Know About Penalties Under Section 271FAA

Section 271FAA of the Income Tax Act, 1961, addresses penalties for furnishing inaccurate information in statements relating to specified financial transactions (SFTs). This provision ensures that reporting entities provide accurate and complete information to tax authorities, enabling effective monitoring

What Investment Funds Should Know About Penalties Under Section 271FAB

Section 271FAB of the Income Tax Act, 1961, imposes penalties on investment funds that fail to furnish prescribed information or documents within the stipulated time. This section aims to ensure transparency and compliance by investment funds in reporting details

What Professionals Should Know About Penalties Under Section 271J

Section 271J of the Income Tax Act, 1961, addresses the imposition of penalties on professionals who furnish incorrect information in reports or certificates. This provision is aimed at ensuring accuracy and accountability in certifications and reports that influence tax

Author: CA HARSH GARG