Who can be penalised under Section 464?

Research associations, universities, colleges and other institutions covered by Section 45, and institutions or funds subject to the reporting obligations under Section 354.

Is the penalty charged for each day of delay?

No. Section 464 specifies a penalty range of Rs. 10,000 to Rs. 1,00,000 rather than a per-day rate.

Can reasonable cause prevent the penalty?

Section 470 provides a reasonable-cause protection for specified penalties. The facts, records and applicability of that provision must be checked.

Which earlier provision corresponds to Section 464?

Section 271K of the Income-tax Act, 1961 broadly corresponds to Section 464 of the Income-tax Act, 2025.

Home / Income-tax Act 2025 / Section 464

Section 464 Income Tax Act 2025: What Is the Penalty for Failure to Furnish Statements?

Q: What is the penalty under Section 464?

The Assessing Officer may impose a penalty of not less than Rs. 10,000 and not more than Rs. 1,00,000 for specified failures to furnish statements, certificates or documents.

Section 464 prescribes a penalty of Rs. 10,000 to Rs. 1,00,000 for specified failures to furnish prescribed statements, certificates or documents by research institutions and eligible institutions or funds.

Current law: Income-tax Act, 2025 (Act 30 of 2025), effective from 1 April 2026. This guide reflects the statutory text as amended by the Finance Act, 2026. Verify the applicable reporting rules, forms and deadlines for the relevant tax year.

On this page

What does Section 464 provide?
Who is covered and what defaults attract penalty?
Key statutory terms
Penalty amount and examples
Procedure and reasonable cause
Corresponding 1961 Act provision
Frequently asked questions
Official law and related sections

What does Section 464 provide?

Section 464, titled Penalty for failure to furnish statements, etc., empowers the Assessing Officer to impose a penalty ranging from Rs. 10,000 to Rs. 1,00,000 on the persons specified in clauses (a) and (b) when they do not comply with the stated statutory reporting obligations.

The provision is directed at particular institutions and funds; it is not a general penalty for every taxpayer who misses a return-filing deadline.

Who is covered and what defaults attract penalty?

Section 464(a): Research-related institutions

A research association, university, college or other institution referred to in Section 45 may face penalty if it fails to deliver or furnish the documents prescribed under Section 45(4)(a). Section 45 concerns expenditure on scientific research; the precise reporting duty must be identified from that provision and the applicable rules.

Section 464(b): Institutions and funds

An institution or fund may face penalty if it fails to deliver, or cause to be delivered, a statement within the time prescribed under Section 354(1)(e), or fails to furnish a certificate prescribed under Section 354(1)(g). These obligations relate to the statutory approval and reporting framework for eligible institutions or funds.

Important distinction: The enacted Section 464(b) refers to Section 354(1)(e) and Section 354(1)(g). Do not substitute references from an earlier bill draft without checking the enacted provision.

Relevant statutory terms and definitions

Assessing Officer: The income-tax authority falling within the definition in Section 2(12), subject to the relevant jurisdictional directions and statutory powers.

Research association, university, college or other institution: The class of entities referred to in Section 45 for the purposes of the scientific research expenditure framework; the applicable approval and reporting requirements depend on that section.

Institution or fund: The entity subject to the approval and statement or certificate obligations under Section 354. The scope is determined by that provision, rather than by the everyday meaning of the words.

Statement: The information return required by the applicable statutory provision and prescribed rules; its format and deadline should be checked against the rules in force.

Certificate: The certificate required under Section 354(1)(g), in the form and manner prescribed under the applicable rules.

What is the penalty under Section 464?

Default	Statutory penalty
Failure to furnish documents under Section 45(4)(a)	Rs. 10,000 to Rs. 1,00,000
Failure to furnish statement under Section 354(1)(e)	Rs. 10,000 to Rs. 1,00,000
Failure to furnish certificate under Section 354(1)(g)	Rs. 10,000 to Rs. 1,00,000

The section does not prescribe a daily penalty rate. The Assessing Officer determines the amount within the statutory range, subject to the applicable procedure and safeguards.

Illustrative examples

Example 1: An eligible research institution fails to submit documents prescribed under Section 45(4)(a). The Assessing Officer may initiate penalty proceedings under Section 464(a), with a penalty in the statutory range.

Example 2: An institution required to issue the certificate under Section 354(1)(g) does not do so. Section 464(b) may apply, subject to examination of the obligation, facts and any available defence.

Example 3: A statement is filed late due to a documented system disruption. The institution should retain contemporaneous evidence and assess whether reasonable-cause relief is available under Section 470.

How is a penalty imposed and can it be avoided?

The Assessing Officer is the authority named in Section 464. Before a penalty is imposed, the applicable procedural safeguards under Section 471 and the limitation provisions under Section 472 should be considered.

Reasonable cause: Section 470 provides protection against specified penalties where the person proves reasonable cause for the failure. An institution relying on that protection should preserve its filing history, acknowledgements, technical error records, communications and evidence of corrective action.

Practical compliance checklist

Identify whether Section 45(4)(a) or Section 354(1)(e)/(g) applies.
Confirm the applicable statement or certificate, form, due date and filing channel.
Maintain supporting records, approvals, donor or research documentation and filing acknowledgements.
Correct omissions promptly and retain proof of corrective filings.
Respond to any penalty notice with documentary evidence and applicable legal grounds.

Corresponding provision under the Income-tax Act, 1961

Section 464 broadly corresponds to Section 271K of the Income-tax Act, 1961. Both concern penalties for specified failures to furnish statements or certificates by research-related entities and institutions or funds. The wording and cross-references have been reorganised under the 2025 Act, so the relevant tax year and governing legislation should be identified before relying on earlier guidance or decisions.

Frequently asked questions

What is the minimum penalty under Section 464?

Rs. 10,000, subject to the statutory conditions and any applicable relief.

What is the maximum penalty under Section 464?

Rs. 1,00,000.

Does Section 464 impose a daily penalty?

No. It prescribes a penalty range, not an amount for every day of delay.

Does Section 464 apply to all charitable organisations?

No. It applies to the specified classes of entities and failures described in Section 464(a) and (b).

Which authority may impose the penalty?

The Assessing Officer.

Can a taxpayer claim relief for reasonable cause?

Section 470 should be examined for reasonable-cause protection, with supporting evidence of the circumstances leading to the default.

Official text and related statutory provisions

For authoritative wording, consult the Income-tax Act, 2025 as amended by the Finance Act, 2026. Read Section 464 together with Sections 45, 354, 470, 471 and 472, and the applicable Income-tax Rules.

This article is general legal information. The applicable reporting obligations, forms and remedies depend on the facts and tax year.

Last updated: 12 November 2026