Section 441
Section 441: penalty for failure to keep, maintain or retain books of account
Section 441 is a straightforward, flat-rate penalty provision under Chapter XXI (Penalties): a person who fails to keep and maintain their books of account and other documents as required by section 62 and the rules made under it, or fails to retain them for the prescribed period, can be penalised ₹25,000.
What Section 441 says
"A penalty of ₹25,000 may be imposed on a person by the Assessing Officer or the Joint Commissioner (Appeals) or the Commissioner (Appeals), if he fails to-- (a) keep and maintain the books of account and other documents as per section 62 or the rules made thereunder, in respect of any tax year; or (b) retain such books of account and other documents for the period specified in the said rules."
Who can impose this penalty, and for what
The Assessing Officer, the Joint Commissioner (Appeals), or the Commissioner (Appeals) can impose the ₹25,000 penalty for either of two distinct failures: not keeping and maintaining the books of account and other documents required under section 62 (or its rules) for a given tax year, or not retaining books/documents already kept for as long as the rules under section 62 require.
Frequently asked questions
How much is the penalty for not maintaining books of account under Section 441?
₹25,000, imposable by the Assessing Officer, the Joint Commissioner (Appeals) or the Commissioner (Appeals).
Does the penalty apply only to not keeping books, or also to not retaining them?
Both - section 441 covers failure to keep and maintain books/documents as required under section 62, and separately, failure to retain them for the period specified in the rules under section 62.
Related sections
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Get help maintaining compliant books of accountLast updated 9 September 2026