Section 460
Section 460: penalty for failure to submit statement under Section 505
Section 460 penalises a person who is required to furnish a statement under section 505 but fails to do so within the prescribed period, with the penalty structured differently depending on how long the failure continues.
What Section 460 says
"If any person required to furnish statement under section 505, fails to do so within the period prescribed under that section, the Assessing Officer may impose on him, a penalty of-- (a) ₹1,000 for every day for which the failure continues, if the period of failure does not exceed three months; or (b) ₹1,00,000 in any other case."
How the penalty is structured
| Duration of failure | Penalty |
|---|---|
| Up to three months | ₹1,000 for every day the failure continues |
| Beyond three months | ₹1,00,000 |
Frequently asked questions
What is the penalty for a short delay in filing a Section 505 statement?
₹1,000 for every day of the failure, as long as the failure period does not exceed three months.
What if the failure continues beyond three months?
The penalty switches to a flat ₹1,00,000, under section 460(b), rather than continuing to accumulate daily.
Related sections
Want this applied to your actual filing, not just explained?
Get help responding to a statement filing noticeLast updated 9 September 2026