Penalty 271J-Furnishing incorrect report-certificate by Chartered Accountants, merchant banker or registered valuer. CIT(A) may direct Rs. 10000 as penalty for each report/certificate
Budget 2017-18 : Penalty on professionals for furnishing incorrect information in statutory report or certificate.
The thrust of the Government in recent past is on voluntary compliance. Certification of various reports and certificates by a qualified professional has been provided in the Act to ensure that the information furnished by an assessee under the provisions of the Act is correct. Various provisions exist under the Act to penalise the defaulting assessee in case of furnishing incorrect information. However, there exist no penal provision for levy of penalty for furnishing incorrect information by the person who is responsible for certifying the same.
In order to ensure that the person furnishing report or certificate undertakes due diligence before making such certification, it is proposed to insert a new section 271J so as to provide that if an accountant or a merchant banker or a registered valuer, furnishes incorrect information in a report or certificate under any provisions of the Act or the rules made thereunder, the Assessing Officer or the Commissioner (Appeals) may direct him to pay a sum of ten thousand rupees for each such report or certificate by way of penalty.
It is further proposed to define the expressions “accountant”, “merchant banker” and “registered valuer”.
It is also proposed to provide through amendment of section 273B that if the person proves that there was reasonable cause for the failure referred to in the said section, then penalty shall not be imposable in respect of the proposed section 271J.
These amendments will take effect from 1st April, 2017.
Also Read:
Panalty u/s 271J – Those afraid of the sword of the Damocles, should not aspire to be Dionysius Click Here >>
High Court has awarded interest @ 12% p.a. on excessive excise duty refunded after twelve years after petitioners was compelled…
NSDL latest e-TDS TCS RPU Version 5.8 from FY 2007-08 NSDL has revised the e-TDS TCS RPU utility for preparing…
Assessee duty bound to deduct TDS u/s 194I and 194J of the Act on the provisions for rent and professional…
Notification issued acquires the force of law only upon its publication in the Official Gazette – Supreme Court In a…
Case remitted to verify claim of RTO liaisoner that the cash deposited in his account was of vehicle owners and…
The Jammu & Kashmir Bank Ltd. invites on-line applications for empanelment as Stock Auditors for 3 Financial Years i.e. from…