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Section 446 of Income Tax Act - Penalty for failure to furnish information or for furnishing inaccurate information on transaction of crypto-asset.

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Last Updated: 01-04-2026

[i][446. Penalty for failure to furnish information or for furnishing inaccurate information on transaction of crypto-asset.

 (1) If any person who is required to furnish a statement in respect of a transaction of a crypto-asset under section 509(1), fails to furnish such statement within the time prescribed under the said section, the prescribed income-tax authority under that section may impose on him, a penalty of ₹ 200 for every day for which such failure continues.

(2) The prescribed income-tax authority may impose a penalty of ₹ 50000 on a person referred in sub-section (1), if such person—

(a) provides inaccurate information in the statement and fails to remove such inaccuracy as per section 509(4); or

(b) Fails to comply with due diligence the requirement under section 509(5).]

 

[i] Section substituted by Section 101 of FA, 2026 wef 01-04-2026. Earlier it read as

446. Failure to get accounts audited.

If any person fails to get his accounts audited for any tax year or years or furnish the audit report as required under section 63, the Assessing Officer may impose a penalty on such person, which shall be the lesser of–

(a) 0.5% of the total sales, turnover, or gross receipts in business, or the gross receipts in profession for such tax year or years; or

(b) ₹150000.