What are the penalties for failure to comply with notices or directions issued by tax authorities?

Section 272A(1) of the Income Tax Act imposes a penalty for failure to comply with notices or directions issued under sections 115WD(3), 115WE, 142(1), 153A, or 153C. The penalty can extend up to Rs. 10,000 for each such failure. Note: Finance Act 2025 has introduced a new penalty under section 272A(2) for failure to comply with notices or directions issued under section 94A (relating to impermissible avoidance arrangements), effective from April 1, 2025. The penalty can extend up to Rs. 1 lakh.