Critical appraisal of penal provisions of Income-tax Act, 1961

V. K. SUBRAMANI – [2021] 133 taxmann.com 224 (Article)

Penal provisions of the Income-tax Act, 1961 are so many which show that this piece of legislation is cumbersome to follow but the lawmakers still want the subjects to comply with those provisions meticulously. It would be difficult for a normal taxpayer to, not to pay interest or penalty or fee under any of the provisions of Income-tax Act, 1961. Every taxpayer in his life time might have paid interest because of various provisions which are spread over the length and breadth of the Act and moderate taxpayers might have paid fee besides interest contained in the various provisions of the Act. Any taxpayer or tax counsel who has not been vigilant would end up paying penalty which are also so many in the legal statute. If a taxpayer assessed to tax consistently over the years claims that he has never ever paid interest, fee or penalty then such taxpayer deserves separate commendation/award for such compliance. But it would be very hard to find any such person. With computerised database at the disposal of the Department the Government can think of recognising such taxpayers in the days to come.

This refresher takes critical note of the penal provisions contained in Chapter XXI of the Income-tax Act, 1961.

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