Income-tax Act, 1961Section 271D / 271E
- 271D: penalty equal to loan/deposit accepted in cash
- 271E: penalty equal to loan/deposit repaid in cash
- 271DA: penalty for 269ST cash receipts
Applies to FY 2025-26 (AY 2026-27) and earlier years.
IT Act 1961 → 2025 / Section 271D / 271E
PenaltiesSection 271D / 271E → Section 450
Penalty for cash loans/deposits (269SS) and cash repayments (269T)
Section 271D / 271E of the old Income-tax Act, 1961 · new section 450 under the Income-tax Act, 2025
New reference Section 450 (271D); 453 (271E); 451 (271DA)
Income-tax Act, 2025Section 450 (271D); 453 (271E); 451 (271DA)
- Section 450: penalty equal to amount taken in breach of section 185
- Section 453: penalty equal to amount repaid in breach of section 188
- Section 451: penalty equal to cash received in breach of section 186 (old 271DA)
Applies from tax year 2026-27 (from 1 April 2026).
What changed
Renumbered; penalty amounts unchanged.
Practice notes
- Reasonable cause (section 470) remains a defence.
Frequently asked
What is the penalty for cash loan under the new Income Tax Act 2025?
Section 450: penalty equal to the loan or deposit accepted in cash in breach of section 185 (old 269SS).
What is section 271D / 271E called in the new Income-tax Act, 2025?
Section 271D / 271E of the Income-tax Act, 1961 corresponds to Section 450 (271D); 453 (271E); 451 (271DA) of the Income-tax Act, 2025, which applies from 1 April 2026 (tax year 2026-27).
What changed in section 271D / 271E under the new Income Tax Act?
Renumbered; penalty amounts unchanged.
Is section 271D / 271E still applicable for FY 2025-26?
Yes. Income of FY 2025-26 (AY 2026-27) and earlier years is governed by section 271D / 271E of the 1961 Act. Section 450 (271D); 453 (271E); 451 (271DA) of the 2025 Act applies from tax year 2026-27.