# The Finance Act, 2014, Section 71: Insertion of new section 271FAA

- Act: The Finance Act, 2014 (Act 25 of 2014)
- Ministry: Ministry of Finance
- Source URL: https://indiacode.ecourtsindia.com/finance-act-2014/section/71/

## Text

Insertion of new section 271FAA. 71. After section 271FA of the Income-tax Act, the following section shall be inserted with effect from the 1st day of April, 2015, namely:— "271FAA. Penalty for furnishing inaccurate statement of financial transaction or reportable account.— If a person referred to in clause (k) of sub-section (1) of section 285BA, who is required to furnish a statement under that section, provides inaccurate information in the statement, and where— (a) | the inaccuracy is due to a failure to comply with the due diligence requirement prescribed under sub-section (7) of section 285BA or is deliberate on the part of that person; or (b) | the person knows of the inaccuracy at the time of furnishing the statement of financial transaction or reportable account, but does not inform the prescribed income-tax authority or such other authority or agency; or (c) | the person discovers the inaccuracy after the statement of financial transaction or reportable account is furnished and fails to inform and furnish correct information within the time specified under sub-section (6) of section 285BA, then, the prescribed income-tax authority may direct that such person shall pay, by way of penalty, a sum of fifty thousand rupees.". © Copyright. Taxmann Publications Pvt. Ltd.

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