Sections 44 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 44 of the Information Technology Act, 2000 fixes penalties for failing to furnish a document, return or report, failing to file a return on time, and failing to maintain books of account or records. Section 45 is a residuary penalty for contravening rules or regulations where no penalty has been separately provided. Both sections are amended by the Jan Vishwas (Amendment of Provisions) Act, 2023, and the changes are set out beside the printed figures below.
As printed in the consolidated copy: section 44 prescribes a penalty not exceeding one lakh and fifty thousand rupees for each failure to furnish a document, return or report; five thousand rupees for every day of failure to file a return on time; and ten thousand rupees for every day of failure to maintain books or records. Section 45 prescribes compensation or a penalty not exceeding twenty-five thousand rupees. As amended by the Jan Vishwas (Amendment of Provisions) Act, 2023: fifteen lakh rupees, fifty thousand rupees and one lakh rupees in section 44; and in section 45 a penalty not exceeding one lakh rupees plus compensation not exceeding ten lakh rupees (intermediary, company or body corporate) or one lakh rupees (any other person).
Source and scope
This article follows the consolidated text consulted (the Act as amended by the Information Technology (Amendment) Act, 2008). Later amendments and the current position of both sections should be checked. The Jan Vishwas changes are applied from Schedule item 32(B) and 32(C) of that Act. If you are a company or intermediary that must file returns or furnish information under the Act, a legal consultation can help you map those duties.
Section 44 as printed in the consolidated copy
"If any person who is required under this Act or any rules or regulations made thereunder to":
| Clause | Duty | Failure leads to |
|---|---|---|
| (a) | furnish any document, return or report to the Controller or the Certifying Authority | "liable to a penalty not exceeding one lakh and fifty thousand rupees for each such failure" |
| (b) | file any return or furnish any information, books or other documents within the time specified therefor in the regulations | "liable to a penalty not exceeding five thousand rupees for every day during which such failure continues" |
| (c) | maintain books of account or records | "liable to a penalty not exceeding ten thousand rupees for every day during which the failure continues" |
Three points. First, the duty must arise "under this Act or any rules or regulations made thereunder". Second, clause (a) is a penalty per failure, while clauses (b) and (c) run for every day the failure continues. Third, the persons to whom the document or return goes under clause (a) are the Controller or a Certifying Authority; see our articles on the Controller of Certifying Authorities and the duties of a Certifying Authority.
Section 44 as amended by the Jan Vishwas (Amendment of Provisions) Act, 2023
Item 32(B) of the Schedule provides:
- (i) in clause (a), for the words "one lakh and fifty thousand", the words "fifteen lakh" shall be substituted;
- (ii) in clause (b), for the words "five thousand", the words "fifty thousand" shall be substituted;
- (iii) in clause (c), for the words "ten thousand", the words "one lakh" shall be substituted.
| Clause | As printed in the consolidated copy | As amended by the Jan Vishwas (Amendment of Provisions) Act, 2023 |
|---|---|---|
| (a) | not exceeding one lakh and fifty thousand rupees for each such failure | not exceeding fifteen lakh rupees for each such failure |
| (b) | not exceeding five thousand rupees for every day during which such failure continues | not exceeding fifty thousand rupees for every day during which such failure continues |
| (c) | not exceeding ten thousand rupees for every day during which the failure continues | not exceeding one lakh rupees for every day during which the failure continues |
Section 45 as printed in the consolidated copy
"Whoever contravenes any rules or regulations made under this Act, for the contravention of which no penalty has been separately provided, shall be liable to pay a compensation not exceeding twenty-five thousand rupees to the person affected by such contravention or a penalty not exceeding twenty-five thousand rupees."
Reading the words:
- It is a residuary provision: it applies only where "no penalty has been separately provided".
- It covers contravention of rules or regulations made under the Act, as printed.
- The remedy is compensation to the person affected or a penalty, each capped at twenty-five thousand rupees.
Section 45 as amended by the Jan Vishwas (Amendment of Provisions) Act, 2023
Item 32(C) substitutes, first, for the words "rules or regulations" the words "rules, regulations, directions or orders"; and second, for the words "compensation not exceeding twenty-five thousand rupees to the person affected by such contravention or a penalty not exceeding twenty-five thousand rupees", the words "penalty not exceeding one lakh rupees, in addition to compensation to the person affected by such contravention not exceeding— (a) ten lakh rupees, by an intermediary, company or body corporate; or (b) one lakh rupees, by any other person."
| Feature | As printed in the consolidated copy | As amended by the Jan Vishwas (Amendment of Provisions) Act, 2023 |
|---|---|---|
| What is contravened | rules or regulations | rules, regulations, directions or orders |
| Penalty | a penalty not exceeding twenty-five thousand rupees (alternative to compensation) | penalty not exceeding one lakh rupees |
| Compensation to the person affected | not exceeding twenty-five thousand rupees (alternative to penalty) | in addition to the penalty: not exceeding ten lakh rupees by an intermediary, company or body corporate; or one lakh rupees by any other person |
| Relationship | compensation or penalty | penalty in addition to compensation |
Drafting note. The printed words "shall be liable to pay a" come before the substituted words, so, applied word for word, the amended text reads "shall be liable to pay a penalty not exceeding one lakh rupees, in addition to compensation ..."; we have not altered it. "Intermediary" has the meaning in section 2(1)(w); see our article on section 2: computer, data, information, intermediary and cyber security. The word "body corporate" is used in the amended section 45 without a definition in that section.
Commencement of the Jan Vishwas changes
Section 1(2) of the Jan Vishwas (Amendment of Provisions) Act, 2023 provides that it comes into force on a date the Central Government appoints, and different dates may be appointed for different enactments. No date for item 32 is in the sources used here. Check whether the amendments to sections 44 and 45 have been brought into force before relying on either set of figures. Section 3 of the same Act also provides for a periodic increase in fines and penalties; no figure is computed here.
Who decides and how
Neither section says who imposes the penalty or awards the compensation. Section 46 as amended says an adjudicating officer decides whether a person has contravened a provision of "this Act"; see our article on the adjudicating officer and power to adjudicate. Civil compensation for specified acts is in section 43; see our article on section 43. Nothing more is inferred here.
A worked example
Harvest Cert Services Private Limited is a Certifying Authority required by regulations to file a return by a stated date. It files late and the failure continues for six days. As printed, clause (b) of section 44 provides a penalty not exceeding five thousand rupees for every day during which the failure continues; as amended, not exceeding fifty thousand rupees for every day. Separately, an online marketplace operator contravenes a direction for which the Act prints no separate penalty. As printed, section 45 covers "rules or regulations" only; as amended it covers "rules, regulations, directions or orders" and allows a penalty not exceeding one lakh rupees plus compensation to the person affected not exceeding ten lakh rupees, since an intermediary or company is the contravener. Which figures apply on a given date depends on the commencement position.
Need help with returns, records and penalty exposure?
If you file returns with the Controller or a Certifying Authority, or want to know which penalty figures could apply to a contravention, we can map the duties and the figures for you. Please ask for a legal consultation and bring the regulation or direction in question.
Key takeaways
- Section 44 as printed: up to one lakh and fifty thousand rupees per failure; five thousand rupees per day; ten thousand rupees per day.
- Section 44 as amended: fifteen lakh rupees; fifty thousand rupees per day; one lakh rupees per day.
- Section 45 as printed: compensation or a penalty, each up to twenty-five thousand rupees.
- Section 45 as amended: penalty up to one lakh rupees plus compensation up to ten lakh rupees (intermediary, company or body corporate) or one lakh rupees (any other person).
- Commencement of the amendments is by notification; no date is in the sources used here.
Read next
- Section 46: adjudicating officer and power to adjudicate
- Section 43: compensation for damage to a computer and unauthorised access
- Sections 30 to 34: duties of a Certifying Authority
- Cyber law: Information Technology Act 2000, offences, penalties and adjudication
Disclaimer: Based on a consolidated copy of the Information Technology Act, 2000 as amended by the Information Technology (Amendment) Act, 2008, on the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021 as originally notified on 25 February 2021 and on the CERT-In Directions of 28 April 2022, read with the amendments made to the Act by the Jan Vishwas (Amendment of Provisions) Act, 2023 and by section 44 of the Digital Personal Data Protection Act, 2023, as consulted on 2 October 2026. Commencement notifications, other amendments, rules, directions and the current position of each provision are not covered and should be checked. This article is general information, not legal advice; check the official text before acting.