Section 456

Section 456: penalty for failure to furnish statement or information or document by an eligible investment fund

Section 456 is a flat-rate penalty aimed specifically at an eligible investment fund - if it fails to furnish a statement, information or document required under paragraph 4 of Schedule I within the prescribed time, the penalty is ₹5,00,000.

This explanation is AI-assisted and pending review by our CA/CS team. It is general information, not professional advice - always cross-check against the bare law text above or talk to our tax team for guidance specific to your situation.

What Section 456 says

"If any eligible investment fund required to furnish a statement or any information or document under paragraph 4 of Schedule I, fails to do so within the time prescribed under the said paragraph, the income-tax authority prescribed under the said paragraph may direct that such fund shall pay, by way of penalty, a sum of ₹5,00,000."

Who this applies to

This penalty is specific to an "eligible investment fund" that has a reporting obligation under paragraph 4 of Schedule I of the Act - if the fund misses the prescribed deadline for furnishing the required statement, information or document, the prescribed income-tax authority can direct it to pay ₹5,00,000 as a penalty.

Frequently asked questions

What is the penalty under Section 456?

A flat ₹5,00,000, directed by the prescribed income-tax authority, where an eligible investment fund fails to furnish a required statement, information or document under paragraph 4 of Schedule I within the prescribed time.