What Is Penalty Code 11C And N11C?

Hey Pal,

The tax return filing date was July 31 for the current AY 2022-23 (FY 2021-22). Taxpayers who file their ITRs late are subject to a penalty under section 234F of the Income-tax Act. 11C or N11C are actually payment codes that the government uses to calculate the penalties that may be owed under various applicable provisions of the Income Tax Act once the assessee has made a deposit.

if the assessee officer, commissioner of appeals, or principal commission during any proceeding is satisfied that the assessee has concealed the particulars of his income or furnished inaccurate particulars of income, he may direct that the assessee pay a penalty that is not less than but not greater than three times the amount of tax sought to be evaded by reason of the concealment of the particulars of his income. In other words, if any of the following circumstances are met, the income tax office may impose a penalty.

• The assessee has hidden his income's specifics.

• The assessee provided false information about their income.

According to 11C, all fines assessed under section 271(1)(c) shall be deposited in this account. However, according to N11C all fines, excluding those under section 271(1)(c), will be deposited in accordance with this code.

According to this, N11C applies to all portions, whereas 11C is specific to just one section.

I hope this clarifies your query about the difference between penalty code 11C and N11C.

In simple terms, 11C or N11C is a penalty for hiding income. I hope this helps:)

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As you can understand from the name, 11C penalty code is a code for penalty payments. These codes are used by the Government of India. Let me explain to you how these codes are used.

The Government uses these codes to determine the penalty/penalties that are deposited by the assessee, applicable under the different sections of the Income Tax Act by taking a sum sort of all the account numbers. 

Penalty code 11C or N11C

Penalty Code 11C - All of the penalties under section 271(1)(c) are deposited under this code. 

Penalty Code N11C - All of the penalties other than section 271(1)(c) are deposited under this code.

Now let me explain to you what is Section 271(1)(c)

If an assessee conceals the particulars of his/her income or furnishes wrong or inaccurate details of his/her income, then he shall be liable to pay a penalty. Under Section 271(1)(c), the Income Tax Authority gets the power to levy a penalty for such frauds. If the commissioner or the assessee officer makes an appeal to the principal commission regarding any such fraud by the assessee, then he/she will have o pay a penalty which shall not be less than but should also not exceed 3 times the amount of the tax that is found out or sought to be evaded by the assessee. 

In simple words, the Income Tax Authority will levy a penalty on the assessee if any of the following conditions are satisfied.

• If the assessee has concealed the particulars of their income

• If the assess has provided wrong or inaccurate details of their income.

I hope this helps you understand

11C penalty code.