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THE INCOME TAX ACT, 2025
Section 455 of Income Tax Act - Pe...
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455. Penalty for furnishing inaccurate statement of financial transaction or reportable account.
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(1) The prescribed income-tax authority referred to in section 508 may direct that a person required to furnish a statement under sub-section (1) of the said section shall pay penalty of ₹50000, if such person— (a) provides inaccurate information in the statement or fails to furnish correct information within the period specified under section 508(8); or (b) fails to comply with the due diligence requirement under section 508(9). |
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(2) The prescribed income-tax authority referred to in section 508, shall direct that reporting financial institution referred to in section 508(1)(k) of the, shall, in addition to the penalty under sub-section (1) of this section, if any, pay a sum of ₹5000 for every inaccurate reportable account, if– (a) the said institution provides inaccurate information in the statement required to be furnished under section 508(1); and (b) the inaccuracy in the said statement is due to false or inaccurate information furnished by the holder or holders of the relevant reportable account or accounts. |
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(3) The reporting financial institution as referred to in sub-section (2) shall be entitled to–– (a) recover the amount paid under sub-section (2) on behalf of the reportable account holder; or (b) retain an amount equal to the sum so paid out of any moneys that may be in its possession, or may come to it from every such account holder. |
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