Penalty
Section 271(1)(b) Penalty for Non-Compliance — How to Reply and Avoid Rs 10,000 Penalty
Received a Section 271(1)(b) penalty notice? This section imposes Rs 10,000 per failure to comply with notices under Sections 142(1), 143(2), or 142(2A). Learn how to respond, show reasonable cause, and get the penalty dropped. For Indian CAs and taxpayers.
Response Deadline
As specified in the show cause notice
Extension
Possible
New IT Act
Section 271(1)(b)
What Does This Notice Mean?
You failed to respond to a notice or attend a hearing during assessment proceedings. Each failure attracts a separate penalty of Rs 10,000.
Common Triggers
- Not responding to 142(1) inquiry notice
- Not attending hearing under 143(2)
- Not producing books of accounts when required
How to Respond
- 1Show reasonable cause for non-compliance
- 2Demonstrate that compliance was attempted or partially done
- 3Cite health issues, unavoidable absence, or postal delay
- 4Argue that the penalty is disproportionate if the non-compliance was procedural
- 5Appeal to CIT(A) if penalty is imposed
Consequences of Non-Compliance
Penalty of Rs 10,000 per failure. Multiple failures can result in multiple penalties.
Frequently Asked Questions
How much is the penalty under Section 271(1)(b)?
Rs 10,000 for each failure to comply with a notice. If you missed multiple notices, each non-compliance can attract a separate penalty.
Related Sections
Received a Section 271(1)(b) Notice?
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Disclaimer: This content is for informational purposes only and does not constitute legal or tax advice. Always consult a qualified Chartered Accountant or tax professional for advice specific to your situation. AI-generated content should be reviewed by a professional before use.