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CMA Intermediate · Direct and Indirect Taxation · Tax Deducted at Source and Tax Collected at Source

A person furnishes a TCS statement on time but with incorrect information. Under Section 461 of the Income-tax Act, 2025, what penalty may the Assessing Officer impose?

The Assessing Officer may impose a penalty of not less than Rs 10,000 but up to Rs 1,00,000. Section 461(1)(b) covers furnishing incorrect information in the statement, and the relief for delay in Section 461(2) does not extend to incorrect information.

  1. ANot less than Rs 10,000 but up to Rs 1,00,000Correct
  2. BNot less than Rs 1,00,000 but up to Rs 10,00,000
  3. CFine only up to Rs 10,000
  4. DNo penalty, since the statement was filed in time

Explanation

Section 461(1)(b) penalises furnishing incorrect information in the statement, with a penalty of at least Rs 10,000 and up to Rs 1,00,000. The relief in Section 461(2) applies only to delay or non-filing under clause (a), so timely filing does not excuse incorrect information.

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