§ 442
Chapter XXI — Penalties
Penalty for Non‑Compliance with Transaction Reporting
Income-tax Act, 2025
The Assessing Officer or Commissioner (Appeals) can levy a penalty of 2% of the value of each international or specified domestic transaction if the taxpayer fails to maintain required records, does not report the transaction, or provides incorrect information.
Additionally, the prescribed income‑tax authority may impose a fixed penalty of up to ₹500,000 for failure to furnish the required information and documents.
📜 Official text of the section +
442. (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 which he is required to do so; or
( c) maintains or furnishes an incorrect information or document.
(2) The prescribed income-tax authority referred to in section 171(4) may impose a
penalty of ` 500000 on a person, if he fails to furnish the information and document
required under the said section.
Penalty in respect of certain income.
Plain-language summary — not the official text. Refer to the bare Act and confirm with a professional for your specific case.
Related sections
§ 439Penalty for under-reporting and misreporting of income§ 440[ (1) An assessee may make an application to the Assessing Officer to grant§ 441Failure to keep, maintain or retain books of account, documents, etc§ 443Penalty in respect of certain income§ 444Penalty for false entry, etc., in books of account§ 445Benefits to related persons