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Section - 271J and 273B - Penalty on professionals for furnishing incorrect information in statutory report or certificate -

 

The Income Tax Act in relation to various compliances rely on the certificates by qualified professionals to ensure that the information is correct. While the provisions exist to penalize the defaulting assessees there is no provision to penalize the professional who is responsible for certifying the same.

 

In order to make such persons responsible and to ensure that they exercise due diligence before making such certification, a new section 271J is proposed to provide that if an accountant or a merchant banker or registered valuer furnishes inaccurate information in any report or certificate, the assessing officer or the CIT(A) may direct him to pay a penalty of Rs.10000/- for each such report or certificate.

 

By amendment of section 273B it is proposed to provide that if a person proves that there was reasonable cause for the failure, penalty shall not be imposable under this section.

 

The amendment will be effective form 1st April 2017.


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