Section 459
Section 459: penalty for failure to furnish report or for furnishing inaccurate report under Section 511
Section 459 sets out a tiered set of penalties for a "reporting entity" under section 511 (the report referred to is the country-by-country type report for a reporting accounting year) - covering outright failure to file the report, failure to produce supporting information, continued default even after a penalty order, and furnishing inaccurate information.
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.
Failure to furnish the section 511 report
Sub-section (1): if a reporting entity under section 511, required to furnish the report referred to in section 511(2) for a reporting accounting year, fails to do so, the prescribed authority may impose a penalty of (a) ₹5,000 for every day of failure, if the failure period does not exceed one month; or (b) ₹15,000 for every day of failure beyond that one-month period.
| Duration of failure | Daily penalty |
|---|---|
| Up to one month | ₹5,000 per day |
| Beyond one month | ₹15,000 per day |
Failure to produce information and documents
Sub-section (2): if a reporting entity under section 511 fails to produce information and documents within the period allowed under section 511(7), the prescribed authority may impose a penalty of ₹5,000 for every day the failure continues, starting the day after that period expires.
Continued failure after a penalty order
Sub-section (3): if the failure under sub-section (1) or (2) continues even after a penalty order for that failure has been served on the entity, the prescribed authority may - regardless of the sub-section (1)/(2) rates - impose a steeper penalty of ₹50,000 for every day the failure continues from the date the order was served.
Furnishing inaccurate information in the report
Sub-section (4): if a reporting entity provides inaccurate information in the report furnished under section 511(2), the prescribed authority may impose a penalty of ₹5,00,000, if any of the following applies:
- The entity knew of the inaccuracy when furnishing the report but failed to inform the prescribed authority
- The entity discovers the inaccuracy after furnishing the report but fails to inform the prescribed authority and furnish a correct report within 15 days of discovery
- The entity furnishes inaccurate information or documents in response to a notice issued under section 511(7)
Frequently asked questions
What is the penalty for a reporting entity that never files its Section 511 report?
₹5,000 per day for the first month of failure, rising to ₹15,000 per day for any failure beyond one month, under section 459(1).
What happens if the entity still doesn't comply after a penalty has already been imposed?
Section 459(3) allows a steeper penalty of ₹50,000 for every day the failure continues after the penalty order is served, overriding the sub-section (1)/(2) rates.
Is there a separate penalty for furnishing an inaccurate report rather than not filing at all?
Yes - section 459(4) sets a penalty of ₹5,00,000 for furnishing inaccurate information in specific circumstances, such as knowing about the inaccuracy and not informing the authority, or not correcting it within 15 days of discovery.
Related sections
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Get help with country-by-country and reporting entity complianceLast updated 9 September 2026