Budget 2024-25: Section 271FAA Amended for Automatic Exchange of Information (AEOI) Compliance

The Indian Budget 2024-25 amends Section 271FAA to enhance compliance with the Automatic Exchange of Information (AEOI) framework. It clarifies penalties for inaccuracies in financial statements required under Section 285BA, including failures in due diligence. Penalties of INR 50,000 apply if inaccuracies are deliberate or not promptly corrected. Additionally, Section 273B is amended to exempt penalties if the taxpayer can prove reasonable cause for inaccuracies. These amendments will be effective from October 1, 2024.