Section 271K of Income Tax Act 1961
Section 271K provides a monetary penalty for specified failures by certain research institutions, educational institutions, companies, funds and other eligible institutions to furnish prescribed statements or certificates under section 35 or section 80G of the Income-tax Act, 1961.
What Does Section 271K Cover?
Section 271K operates without prejudice to other provisions of the Income-tax Act. It applies to two categories of reporting and certificate defaults: specified entities covered by section 35 and institutions or funds covered by section 80G.
| Person or entity | Relevant provision | Default covered by section 271K |
|---|---|---|
| Research association, university, college, other specified institution or specified company | Section 35(1A) | Failure to deliver the prescribed statement within the prescribed time or failure to furnish the prescribed certificate |
| Institution or fund | Section 80G(5) | Failure to deliver the prescribed statement within the prescribed time or failure to furnish the prescribed certificate |
Section 35 - Scientific Research Expenditure and Reporting
Section 35 contains provisions relating to deduction for expenditure on scientific research. Section 271K refers to the research association, university, college or other institution specified in section 35(1), and to the company specified there, where the entity fails to comply with the statement or certificate requirements prescribed under section 35(1A).
The reporting mechanism is designed to enable the tax administration to match donations or contributions claimed by donors with information furnished by the approved recipient entity.
Section 80G - Donations to Certain Funds and Institutions
Section 80G provides deduction, subject to statutory conditions, for qualifying donations to specified funds, charitable institutions and other eligible entities. Section 80G(5) imposes reporting and certification obligations on covered institutions or funds.
Section 271K applies where such an institution or fund fails to deliver the statement within the prescribed time under section 80G(5)(viii), or fails to furnish the prescribed certificate under section 80G(5)(ix).
Statement and Certificate Compliance
The statement and certificate requirements under sections 35 and 80G are supported by the Income-tax Rules and prescribed forms. Eligible institutions should verify the applicable form, due date, electronic filing requirements and correction procedure for the relevant financial year before filing.
Penalty Amount under Section 271K
The penalty is discretionary within the statutory range. The Assessing Officer may direct payment of a sum starting at Rs. 10,000 and extending to Rs. 1,00,000 where a person or entity commits a default specified in section 271K.
Effective Date of Section 271K
The current section 271K was inserted by the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 with effect from 1 April 2021. An earlier insertion proposed with effect from 1 June 2020 was omitted and replaced as part of the 2020 amendment framework.
Income-tax Act 2025
The official Income Tax Department provision-mapping material maps section 271K of the Income-tax Act, 1961 to section 464 of the Income-tax Act, 2025. The law applicable to a particular compliance period should be checked by reference to the relevant commencement and transitional provisions.
Official Resources
Income Tax Department - Section 271K
Income Tax Department - Official Portal