Penalty for furnishing inaccurate statement of financial transaction or reportable account [Section 271FAA] :

Section 271FAA provides for levy of penalty in case of a person, being a prescribed reporting financial institution, who is required to furnish a statement of financial transaction or reportable account, where such person provides inaccurate information in the statement.

In such a case, the prescribed income-tax authority may direct levy of penalty of Rs 50,000, subject to further satisfaction of any one of the following conditions –

(1) The inaccuracy is due to a failure to comply with the due diligence requirement prescribed under section 285BA(7) or is deliberate on the part of that person; or

(2) The person is aware of the inaccuracy at the time of furnishing the statement of financial transaction or reportable account, but does not inform the prescribed income-tax authority or such other authority or agency; or

(3) The person discovers the inaccuracy after furnishing the statement of financial transaction or reportable account but fails to inform and furnish correct information within ten days, being the time specified under section 285BA(6).