The authority requests records for a specific covered transaction under section 171(2) and the taxpayer fails to furnish them. What rate of transaction-value penalty may apply?

Section 457 of the Income-tax Act, 2025 imposes a penalty of 2% of the value of the international or specified domestic transaction where a person fails to furnish information or documents required under section 171(2). The notice under section 171(2) gives ten days to comply, extendable by up to thirty days.