Budget 2017 proposes a levy of Rs 10,000 on professionals for providing incorrect information

Merchant bankers and professionals will now have to pay a penalty for furnishing incorrect information. The union budget has said that if an accountant or a merchant banker or a registered valuer furnishes incorrect information in a statutory report or certificate a penalty of Rs. 10000 would be levied for each such report or certificate.

"Various provisions exist to penalise the defaulting assessee in case of furnishing incorrect information. However, there exists no penal provision for levy of penalty for furnishing incorrect information by the person who is responsible for certifying the same," the budget memorandum said.

"In order to ensure that the person furnishing report or certificate undertakes due diligence before making such certification, it is proposed to insert a new section (271J in the Act) so as to provide that if an accountant or a merchant banker or a registered valuer, furnishes incorrect information in a report or certificate, the Assessing Officer or the Commissioner (Appeals) may direct him to pay a sum of ten thousand rupees for each such report or certificate by way of penalty," it said. The amendments will come into effect from April 1.

"The thrust of the government in recent past is on voluntary compliance. Certification of various reports and certificates by a qualified professional has been provided in the 'Act' to ensure that the information furnished by an assessee is correct," the budget memorandum stated.

But if the person proves that there was reasonable cause for the failure to provide correct information, then penalty would not be imposed. The budget has also proposed to define the expressions 'accountant', 'merchant banker' and 'registered valuer'.