Section 468

Section 468: penalty for failure to comply with the provisions of section 397

Section 468 penalises two related failures connected to tax deduction/collection at source compliance under section 397: general non-compliance with section 397, and knowingly quoting a false Tax Deduction and Collection Account Number (TAN).

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Penalty for failing to comply with section 397

"If a person fails to comply with the provisions of section 397, the Assessing Officer may impose a penalty of ₹10,000 on him."

Penalty for quoting a false TAN

"If a person, required to quote his Tax Deduction and Collection Account Number in challans, certificates, statements or other documents referred to in section 397(1)(b), quotes a number which is false, knowing or believing it to be false or not true, the Assessing Officer may impose a penalty of ₹10,000 on him."

Frequently asked questions

What is the penalty for failing to comply with section 397?

₹10,000, imposed by the Assessing Officer.

What if someone quotes a false TAN on a challan or certificate?

A further penalty of ₹10,000 applies if the person quotes a Tax Deduction and Collection Account Number in a challan, certificate, statement or other document required under section 397(1)(b), knowing or believing that number to be false or not true.