Sec 271A – Penalty for failure to keep or retain books of accounts, documents

Sec 271A - Penalty for failure to keep or retain books of accounts, documents
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Sec 271A – Penalty for failure to keep or retain books of accounts, documents

Applicability of penalty u/s 271A

Penalty us/ 271A is applicable only to certain specified persons for failure to keep, maintain, or retain books of account, documents, etc as prescribed under the act and rules made thereunder.

Why is penalty u/s 271A imposed?

If a person fails to keep and maintain books of accounts and other documents for any previous year under section 44AA of the Income Tax Act read with  Rule 6F of Income-tax Rules.

If a person fails to retain such books of accounts and other documents for the prescribed period under section 44AA of the Income Tax Act read with  Rule 6F of Income-tax Rules.

What is the prescribed period to retain the books of accounts and documents?

The prescribed period for which the books of account and other documents shall be retained under section 44AA read with  Rule 6F of Income-tax Rules. :

  • Six years from the end of the relevant assessment year

or

  • If the assessment u/s 147(Income escaping Assessment) is reopened then till the time it is completed

whichever is later.

 Who can impose the penalty u/s 271A?

Penalty u/s 271A can be imposed by the Assessing Officer or the Commissioner (Appeals).   

What is the quantum of penalty leviable u/s 271A?

A penalty of Rs 25,000/- shall be levied for contravention of section 271A.

Note: Penalty under this section shall not be imposed unless the assessee is given a reasonable opportunity of being heard.

 

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About CA Ankita Khetan 163 Articles
Ankita is a Chartered Accountant in practice and holds a Diploma in IFRS (from ACCA, UK). She is also a Commerce PG and Certified Independent Director (from IICA). She holds a certification in Forex and Treasury Management. Her area of expertise is GST and Income tax. She is passionate about reading, writing, and sharing knowledge on areas related to finance and taxation.

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