Chapter XXI - Penalties
Section 462
Section 462: penalty for failure to furnish information or furnishing inaccurate information under Section 397(3)(d)
Section 462 closes out this stretch of TDS/TCS-adjacent penalties with a flat ₹1,00,000 charge for either not furnishing, or furnishing inaccurately, the information required under section 397(3)(d).
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Need advice on Section 462?
This article is for general information. Refer to the Income-tax Act, 2025 as amended by the Finance Act, 2026 and the Taxation and Other Laws (Amendment) Act, 2026 for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Statutory text
Bare law
If any person, who is required to furnish information under section 397(3)(d), fails to furnish such information, or furnishes inaccurate information, the Assessing Officer may impose a penalty of ₹100000 on such person.
Introduction
Section 462 covers two failures concerning information required under section 397(3)(d): not furnishing it, or furnishing inaccurate information. The provision sets a ₹1,00,000 penalty that the Assessing Officer may impose.
Key takeaways
Two covered defaults
A failure to furnish information under section 397(3)(d) and furnishing inaccurate information are both covered.
Specified penalty
The Assessing Officer may impose ₹1,00,000 on the person required to furnish that information.
What Section 462 says
"If any person, who is required to furnish information under section 397(3)(d), fails to furnish such information, or furnishes inaccurate information, the Assessing Officer may impose a penalty of ₹1,00,000 on such person."
How the penalty applies
The penalty is a flat ₹1,00,000, and it applies in either of two situations: the person fails to furnish the information required under section 397(3)(d) at all, or the person furnishes that information but it is inaccurate.
Applying Section 462 in practice
Distinct failure. This ₹1 lakh potential penalty concerns the information duty in section 397(3)(d), including furnishing inaccurate information. It should not be merged with the TDS/TCS statement penalty in section 461, which cross-refers to section 397(3)(b).
Step-by-step flow for applying Section 462
- 1
Is the person required to furnish information under section 397(3)(d)?
- No: Section 462 does not apply.
- Yes: Go to the next step.
- 2
Was the information furnished?
- No: This is a failure to furnish; skip to step 4.
- Yes: Go to the next step.
- 3
Was the information furnished accurate?
- Yes: Section 462 is not attracted.
- No: This is furnishing inaccurate information; go to the next step.
- 4
Penalty the Assessing Officer may impose
Section 462 states a penalty of ₹1,00,000. It is not a range, but the Assessing Officer "may" impose it, so it is not automatic.
- 5
Check for reasonable cause
Section 470 lists Section 462. If the person proves a reasonable cause for the failure, no penalty is imposed.
Practical checklist
Do
- Identify the precise section 397(3)(d) information duty and whether the allegation is non-furnishing or inaccuracy.
- For an inaccuracy allegation, compare the furnished information with the underlying records.
- establish the precise information required, who had to furnish it, the due or requested time, what was actually supplied and the claimed inaccuracy.
Avoid
- Do not confuse this information duty with the separate TDS/TCS statement filing duty.
Illustrative example
Worked example: information furnished with errors
Hypothetical facts (illustration only, not a real taxpayer): A person required to furnish information under section 397(3)(d) furnishes it, but several entries are inaccurate because figures were copied from the wrong period. The facts are assumed.
Coverage
The person is required to furnish information under section 397(3)(d), so Section 462 can apply.
Nature of the failure
The information was furnished, but it was inaccurate. Section 462 treats this the same way as not furnishing it.
Amount
The penalty stated in Section 462 is ₹1,00,000. The section does not say it is charged per entry, so the several inaccurate entries do not multiply the figure under this section's words.
Defence
The person may try to show reasonable cause under Section 470, with records explaining how the error arose.
Outcome
- The Assessing Officer may impose a penalty of ₹1,00,000.
- No penalty is imposed if a reasonable cause for the failure is proved under Section 470.
Frequently asked questions
What is the penalty under Section 462?
A flat ₹1,00,000, imposed by the Assessing Officer.
Does it matter whether the information was never filed or was filed inaccurately?
No - section 462 applies the same ₹1,00,000 penalty whether the person fails to furnish the section 397(3)(d) information at all, or furnishes it inaccurately.
Who may impose the Section 462 penalty?
The Assessing Officer may impose it on a person required to furnish the information under section 397(3)(d).
Does every error in a TDS statement trigger section 462?
No; identify the subsection creating the breached duty. Section 470 reasonable cause is available for this listed penalty.
Need help applying this provision to your situation?
Get help with TDS/TCS information reporting complianceLast updated 10 October 2026