Penalty for failure to furnish statement of financial transaction or reportable account

If a person who is required to furnish a statement of financial transaction or reportable account under section 508(1), fails to furnish such statement within the time prescribed under sub-section (2) thereof, the income- tax authority prescribed under the said sub-section (1) may impose on him, a penalty of five hundred rupees for every day during which such failure continues.

If the person referred to in sub-section (1), fails to furnish the statement within the period specified in the notice issued under section 508(7), he shall pay penalty of one thousand rupees for every day during which the failure continues, beginning from the day immediately after the time specified in the such notice for furnishing the statement expires.