§ 466
Chapter XXI — Penalties
Penalty for failure to comply with the provisions of section 254
Income-tax Act, 2025
If a taxpayer does not follow the requirements of section 254, the tax authority (Joint Commissioner, Deputy Director, Assistant Director or Assessing Officer) can levy a penalty of up to ₹25,000.
The penalty ceiling was increased from ₹1,000 to ₹25,000 by the Finance Act, 2026, effective 1 April 2026.
📜 Official text of the section +
466. If a person fails to comply with the provisions of section 254, the Joint
Commissioner, Deputy Director or Assistant Director or the Assessing Officer,
may impose a penalty which may extend up to ` 13[25000] on him.
13. Substituted for “1000” by the Finance Act, 2026, w.e.f. 1-4-2026.
Penalty for failure to comply with the provisions of 14[sections 262 and 397].
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§ 442Penalty for Non‑Compliance with Transaction Reporting§ 443Penalty in respect of certain income§ 444Penalty for false entry, etc., in books of account