Section 44 of ITA, 2000 : Section 44: Penalty For Failure To Furnish Information, Return, Etc

Explanation using Example

Let's consider an example of an online service provider, XYZ Pvt. Ltd., which is regulated under the Information Technology Act, 2000.

1. Suppose XYZ Pvt. Ltd. is required to submit an annual security audit report to the Controller but fails to do so. In this case, according to Section 44, XYZ Pvt. Ltd. would be liable to pay a penalty not exceeding one lakh and fifty thousand rupees for each such failure.
2. If XYZ Pvt. Ltd. fails to file a mandatory return or does not provide necessary documents within the stipulated time as specified in the regulations, it would be liable to pay a penalty not exceeding five thousand rupees for each day during which the failure continues.
3. If XYZ Pvt. Ltd. does not maintain its books of account or records as required by the Act, it would be liable to pay a penalty not exceeding ten thousand rupees for each day during which the failure continues.