Insertion of new section 271GA.
72. After section 271G of the Income-tax Act, the following section shall be inserted with effect from the 1st day of April, 2016, namely:-
Penalty for failure to furnish information or document under section 285A.
“271GA. If any Indian concern, which is required to furnish any information or document under section 285A, fails to do so, the income-tax authority, as may be prescribed under the said section, may direct that such Indian concern shall pay, by way of penalty,-
(i) a sum equal to two per cent. of the value of the transaction in respect of which such failure has taken place, if such transaction had the effect of directly or indirectly transferring the right of management or control in relation to the Indian concern;
(ii) a sum of five hundred thousand rupees in any other case.”.
Notes on Clauses:
Clause 72 of the Bill seeks to insert a new section 271GA relating to penalty for failure to furnish information or document under section 285A.
It is proposed to provide that if any Indian concern which is required to furnish any information or document under the proposed section 285A, fails to do so, the Income-tax authority as may be prescribed in the said section 285A, may direct that such Indian concern shall pay, by way of penalty,-
(i) a sum equal to two per cent. of the value of the transaction, in respect of which such failure has taken place, if such transaction had the effect of directly or indirectly transferring the right of management or control in relation to the Indian concern;
(ii) a sum of five hundred thousand rupees in any other case. This amendment will take effect from 1st April, 2016 and will, accordingly, apply in relation to the assessment year 2016-17 and subsequent years.
