Section 271D → Section 351
Penalty for failure to comply with the provisions of section 269SS
Quick Answer
Section 271D of the Income Tax Act, 1961 (Penalty for failure to comply with the provisions of section 269SS) corresponds to Section 351 of the Income-tax Act, 2025, effective 1st April 2026. Status: Retained.
What changed for Section 271D
In the 1961 statute, Section 271D deals with penalty for failure to comply with the provisions of section 269SS. Penalty equal to the amount of loan or deposit accepted in cash (in violation of 269SS).
From 1st April 2026, the same subject sits at Section 351 of the Income-tax Act, 2025 — retained and renumbered as Section 351 of the Income-tax Act, 2025. Retained. 100% punitive penalty.
For Section 271D, the practical impact is rated Critical. Destroys the financial viability of cash loans.
Sec 271D
Provision Summary
Penalty equal to the amount of loan or deposit accepted in cash (in violation of 269SS).
Sec 351
Provision Summary
Retained. 100% punitive penalty.
Key Changes & Highlights
- Automatically proposed by the system if the tax audit report flags a 269SS violation.
Related Sections
Frequently Asked Questions
What is Section 271D of the Income Tax Act, 1961 about?
Section 271D of the Income Tax Act, 1961 covers penalty for failure to comply with the provisions of section 269SS. Penalty equal to the amount of loan or deposit accepted in cash (in violation of 269SS).
Which section replaces Section 271D in the Income-tax Act, 2025?
Section 271D of the Income Tax Act, 1961 maps to Section 351 of the Income-tax Act, 2025, effective 1st April 2026 (status: Retained). Retained. 100% punitive penalty.
What is the impact of the change to Section 271D under the new tax code?
The transition impact for Section 271D is rated Critical. Destroys the financial viability of cash loans.
What should I watch out for when Section 271D moves to the 2025 code?
Automatically proposed by the system if the tax audit report flags a 269SS violation. These points are specific to Section 271D (Penalty for failure to comply with the provisions of section 269SS).
Disclaimer: This mapping of Section 271D (Penalty for failure to comply with the provisions of section 269SS) to Section 351 of the Income-tax Act, 2025 is for educational and reference purposes only, based on publicly available drafts and circulars. As Section 271D is currently marked Retained, always confirm its treatment with a qualified Chartered Accountant before filing or making compliance decisions.
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