Income-tax and Corporate Tax Planning - Income Tax and Corporate Tax Planning Section 1
- Option : D
- Explanation : The provisions relating to the penalty for failure to keep and maintain information and documents in respect of specified domestic transactions are given in section 271AA.
Thus, option (d) is the correct option.
12. The penalty under section 271AA will be a sum equal to
- A
2% of the value of each specified domestic transaction entered into by the taxpayer
- B
1% of the value of each specified domestic transaction entered into by the taxpayer
- C
3% of the value of each specified domestic transaction entered into by the taxpayer
- D
4% of the value of each specified domestic transaction entered into by the taxpayer
- Option : A
- Explanation : The penalty under section 271AA will be a sum equal to 2% of the value of each specified domestic transaction entered into by the taxpayer.
Thus, option (1) is the correct option.
- Option : A
- Explanation : By virtue of section 273B penalty under section 271AA will not be imposed if the taxpayer proves a reasonable cause for failure.
Thus, the statement given in the question is true and hence, option (a) is the correct option.
- Option : C
- Explanation : The penalty under section 271BA for failure to furnish a report from an accountant as is required by section 92E is Rs. 1,00,000.
Thus, option (c) is the correct option.
- Option : A
- Explanation : As per section 271G, if any person who has entered into a specified domestic transaction fails to furnish any such information or document as is required to be furnished under section 92D(3), then the tax authorities may direct that such person shall pay, by way of penalty, a sum equal to 2% of the value of the specified domestic transaction for each such failure.
Thus, the statement given in the question is true and hence, option (a) is the correct option.
