Section 466
Section 466: penalty for failure to comply with the provisions of section 254
Section 466 is a short provision that penalises non-compliance with section 254 of the Act. The maximum penalty was recently revised upward under the Finance Act, 2026.
What Section 466 says
"If a person fails to comply with the provisions of section 254, the Joint Commissioner, Deputy Director or Assistant Director or the Assessing Officer, may impose a penalty which may extend up to ₹25,000 on him."
The text notes that the ₹25,000 figure was substituted for an earlier ₹1,000 by the Finance Act, 2026, with effect from 1 April 2026.
Who can impose the penalty
The penalty may be imposed by the Joint Commissioner, the Deputy Director, the Assistant Director, or the Assessing Officer.
Frequently asked questions
What is the maximum penalty under Section 466?
Up to ₹25,000, for failure to comply with the provisions of section 254.
Has the penalty amount changed recently?
Yes - the Finance Act, 2026, substituted ₹25,000 in place of the earlier ₹1,000 figure, with effect from 1 April 2026.
Who can impose the Section 466 penalty?
The Joint Commissioner, the Deputy Director, the Assistant Director, or the Assessing Officer.
Related sections
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Talk to our tax team about a compliance noticeLast updated 9 September 2026