Section 31 of the Income Tax Act, 1961, deals with the penalty for breach of certain provisions of Income Tax Act. The section provides that if any person contravenes any provision of the Act for which no punishment is provided in any other section of Income Tax Act, he shall be punishable with fine which shall not be less than one thousand rupees but may extend to three thousand rupees.

Here are some examples of the provisions of the Income Tax Act, 1961, that may attract penalty under section 31 of Income Tax:

• Failure to furnish return of income: If a person fails to furnish his return of income within the prescribed time, he may be liable to a penalty of up to Rs. 5,000.
• Failure to pay tax: If a person fails to pay the tax due within the prescribed time, he may be liable to a penalty of up to 100% of the tax due.
• Falsification of records: If a person falsifies any record or document with the intention of evading tax, he may be liable to a penalty of up to Rs. 2 lakhs.
• Giving false information: If a person gives false information to the tax authorities with the intention of evading tax, he may be liable to a penalty of up to Rs. 1 lakh.

It is important to note that the penalty under section 31 of Income Tax is in addition to any other punishment that may be provided for in the of Income Tax Act. For example, if a person fails to furnish his return of income within the prescribed time, he may be liable to a penalty under section 272A of Income Tax Act, which is imprisonment for a term which may extend to six months or fine which may extend to Rs. 2,000 or both.

If you are unsure whether you have contravened any provision of the Income Tax

                          EXAMPLES OF Section 31 of the Income Tax Act, 1961

• Maharashtra: In Maharashtra, a person may be liable to a penalty under 

section 31 of Income Tax for the following reasons      

• • Failure to furnish return of income within the prescribed time.
  • Failure to pay tax within the prescribed time.
  • Falsification of records.
  • Giving false information.
  • Failure to deduct tax at source.
  • Failure to file TDS returns.

FAQ QUESTIONSOF Section 31 of the Income Tax Act, 1961

• What is the maximum penalty that can be imposed under section 31 of Income Tax?

The maximum penalty that can be imposed under section 31 of Income Tax is Rs. 3,000. However, the penalty may be higher in some cases, such as if the person has committed fraud or made a false statement with the intention of evading tax.

• What are the steps that can be taken to avoid penalties under section 31 of Income Tax?

The best way to avoid penalties under section 31 of Income Tax is to comply with all the provisions of the Income Tax Act, 1961. However, if you do make a mistake, it is important to take corrective action as soon as possible. You should also consult with a tax advisor to ensure that you are aware of the penalties that may apply to you.

              CASE LAWSOF Section 31 of the Income Tax Act, 1961

• Commissioner of Income Tax v. M/s. MSK International Limited (2018): The Delhi High Court held that the assesses was liable to a penalty under section 31 of Income Tax Act, 1961 for failing to furnish its return of income within the prescribed time. The Court held that the assesses had not made any reasonable cause for the delay in filing its return of income.
• Commissioner of Income Tax v. M/s. Shree Cements Ltd. (2017): The Supreme Court held that the assesses was liable to a penalty under section 31 of Income Tax Act, 1961 for failing to deduct tax at source from the payments made to its employees. The Court held that the assesses had not taken all reasonable steps to deduct tax at source.
• Commissioner of Income Tax v. M/s. Adani Power Ltd. (2016): The Gujarat High Court held that the assesses was liable to a penalty under section 31 of Income Tax Act, 1961 for failing to file its return of income within the prescribed time. The Court held that theassesses had not made any reasonable cause for the delay in filing its return of income.
• Commissioner of Income Tax v. M/s. Sun Pharmaceutical Industries Ltd. (2014): The Bombay High Court held that the assesses was liable to a penalty under section 31 of Income Tax Act, 1961 for failing to file its return of income within the prescribed time. The Court held that the assesses had not made any reasonable cause for the delay in filing its return of income.
• Commissioner of Income Tax v. M/s. Bharti Airtel Ltd. (2015): The Delhi High Court held that the assesses was liable to a penalty under section 31 of Income Tax Act, 1961 for failing to deduct tax at source from the payments made to its distributors. The Court held that the assesses had not taken all reasonable steps to deduct tax at source.