Section-454: Penalty for failure to furnish statement of financial transaction or reportable account

Section-454 : Penalty for failure to furnish statement of financial transaction or reportable account

Section-454 seeks to provide for imposition of penalty for failure to furnish statement of financial transaction or reportable account. Learn to understand the section-454 as it is, it's help and useful links to follow.

Here onwards, "Act" refers to "Income Tax Act 2025"

1. Section-454 as per act

If a person who is required to furnish a statement of financial transaction or reportable account under section 508(1), fails to furnish such statement within the time prescribed under sub-section (2) thereof, the incometax authority prescribed under the said sub-section (1) may impose on him, a penalty of five hundred rupees for every day during which such failure continues.
If the person referred to in sub-section (1), fails to furnish the statement within the period specified in the notice issued under section 508(7), he shall pay penalty of one thousand rupees for every day during which the failure continues, beginning from the day immediately after the time specified in the such notice for furnishing the statement expires.