Section 271FA → Section 357
Penalty for failure to furnish statement of financial transaction or reportable account
Quick Answer
Section 271FA of the Income Tax Act, 1961 (Penalty for failure to furnish statement of financial transaction or reportable account) corresponds to Section 357 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective 1st April 2026. Status: Retained.
Sec 271FA
Provision Summary
Penalty of Rs. 500 per day (Rs. 1,000 per day after notice) for banks/registrars failing to file the SFT.
Sec 357
Provision Summary
Retained. Ensures that the IT department's data pipeline (AIS) remains fully fed.
Key Changes & Highlights
- Automated penalty levy system.
Related Sections
Frequently Asked Questions
What does Section 271FA of the Income Tax Act 1961 deal with?
Section 271FA (Penalty for failure to furnish statement of financial transaction or reportable account) Penalty of Rs. 500 per day (Rs. 1,000 per day after notice) for banks/registrars failing to file the SFT.
What is the new section number for Section 271FA under the Direct Tax Code 2025?
Section 271FA of the ITA 1961 maps to Section 357 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective from 1st April 2026.
What is the status of Section 271FA under the new tax code?
Section 271FA is marked as "Retained" with status "Active". Impact: High - Compliance burden on financial institutions.
What are the key changes to Section 271FA under DTC 2025?
Automated penalty levy system.
Disclaimer: This page is for educational and reference purposes only. Section mappings are based on publicly available drafts and circulars. Always consult a qualified Chartered Accountant before filing or making compliance decisions under the Direct Tax Code 2025.
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