Section 463
Section 463: penalty for furnishing incorrect information in reports or certificates
Section 463 targets the professionals who sign off on reports and certificates required under the Income-tax Act, 2025 - accountants, Category I merchant bankers and registered valuers. If a report or certificate they furnish under the Act (or the rules made under it) contains incorrect information, they face a fixed penalty of ₹10,000, payable separately for each such report or certificate.
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 463 says
"Any accountant or merchant banker or registered valuer, shall be liable to pay a penalty of ₹10,000 for any incorrect information in any report or certificate furnished under any provision of this Act or the rules made thereunder."
The penalty applies for each such report or certificate that contains incorrect information - so a professional who furnishes multiple flawed reports can face the ₹10,000 penalty for each one.
Who directs the penalty
The penalty is payable on the directions of the Assessing Officer, the Joint Commissioner (Appeals) or the Commissioner (Appeals), where that authority finds the incorrect information in the course of any proceedings under the Act.
Who this section applies to
Section 463 defines two of the three categories it applies to:
- "Merchant banker" means a Category I merchant banker registered with the Securities and Exchange Board of India, established under section 3 of the Securities and Exchange Board of India Act, 1992.
- "Registered valuer" means a person registered as a valuer under section 514.
- The third category, "accountant", is not separately defined within this section's text.
Frequently asked questions
How much is the penalty under Section 463?
₹10,000, payable for each report or certificate that contains incorrect information.
Who can be penalised under Section 463?
An accountant, a Category I merchant banker registered with SEBI, or a registered valuer under Section 514, who furnishes a report or certificate under the Act containing incorrect information.
Who decides whether the penalty applies?
The penalty is payable on the directions of the Assessing Officer, the Joint Commissioner (Appeals) or the Commissioner (Appeals), where the incorrect information is found during proceedings under the Act.
Related sections
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Talk to our tax team about report and certification complianceLast updated 9 September 2026