BACK TO IT ACT
IT Act 2000
Section 45
Residual Penalty
THE STATUTE
Original Text
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 or penalty not exceeding twenty five thousand rupees.
Simplified
Section 45 is the residual or catch-all civil penalty provision — a standard feature of Indian regulatory statutes that ensures no violation goes entirely unpenalised simply because Parliament did not specifically enumerate it. The ₹25,000 ceiling is calibrated for minor technical violations of rules or regulations made under the Act, not for substantive offences (which have their own penalty provisions). Common applications include: failure to comply with specific procedural requirements in the IT Rules not caught by Section 44's specific heads; minor technical violations by intermediaries of the IT Rules 2021 that fall below the threshold of substantive non-compliance; and minor procedural breaches by Certifying Authorities of CCA regulations. Section 45 operates through the Adjudicating Officer mechanism under Section 46. The ₹25,000 ceiling has not been revised since 2000 — it represents a minimal deterrent in today's monetary context.
Legal Evolution
Residual penalty clauses are standard in Indian regulatory statutes including the Companies Act, SEBI Act, and FEMA. The ₹25,000 ceiling has not been revised since 2000, significantly reducing its deterrent value over 25 years of inflation.
Key Amendments
Penalty ceiling unchanged at ₹25,000 since 2000.