Answer

1. F

   Facts

   Failing to furnish information called for under Sec 133 can attract a penalty of ₹500 for each day the failure continues. The officer may also treat the silence as a reason for a deeper inquiry. A genuine reason can avoid the penalty.

2. P

   Provisions and law

   • Sec 272A(2)(c), Income-tax Act 1961Penalty of ₹500 for every day of failure to furnish information called for under Sec 133
   • Sec 273B, Income-tax Act 1961No penalty under listed sections if you prove reasonable cause for the failure
   • Sec 274 (now Sec 471)No penalty without giving you a reasonable opportunity of being heard
3. A

   Analysis

   Sec 272A(2)(c) of the Income-tax Act 1961 provides the daily penalty, so a 60 day delay could mean ₹30,000. Before any penalty, you must be given a hearing under Sec 274 (now Sec 471), and Sec 273B allows you to show reasonable cause, such as illness or not receiving the notice. The bigger risk is that unexplained data may go into a reassessment. A late reply is still better than none.

4. C

   Conclusion

   1. 1Reply as soon as possible, even if late.
   2. 2Explain the reason for any delay with proof.
   3. 3If a penalty notice comes, reply to it showing reasonable cause.
   4. 4Keep your portal email and mobile updated.

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.