This is Set 12 of 40 in the smartvidya question bank on the Information Technology Act, 2000, with the latest amendments and rules. Part IV: Penalties, adjudication and the Appellate Tribunal. This set covers Penalties for failure to furnish information, residuary penalty, adjudicating officers and factors for quantum after the Jan Vishwas Act, 2023.
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Set 12: Chapter IX: Sections 44 to 47 and Adjudication
1. Section 44 provides penalties for
(a) cyber terrorism
(b) obscenity
(c) hacking
(d) failure to furnish information, returns or reports, or to maintain books of account or records, as required under the Act
Ans. (d) failure to furnish information, returns or reports, or to maintain books of account or records, as required under the Act — Explanation: Section 44 deals with compliance failures. [Ref: Section 44]
2. The Jan Vishwas (Amendment of Provisions) Act, 2023 changed the penalties under Section 44 by
(a) making them payable to the subscriber
(b) abolishing all penalties
(c) converting them into imprisonment
(d) increasing the maximum penalty amounts
Ans. (d) increasing the maximum penalty amounts — Explanation: The penalty caps under Section 44 were raised substantially. [Ref: Section 44 as amended]
3. Under Section 44(a) as amended, failure to furnish a document, return or report to the Controller or a CA may attract a penalty up to
(a) ₹5 crore
(b) ₹1.5 lakh for each failure
(c) ₹15 lakh for each failure
(d) ₹500 for each failure
Ans. (c) ₹15 lakh for each failure — Explanation: The Jan Vishwas Act raised the earlier limit of ₹1.5 lakh. [Ref: Section 44(a) as amended]
4. Section 45 is the
(a) penalty for hacking
(b) residuary penalty for contraventions of rules, regulations, directions or orders for which no separate penalty is provided
(c) power of the Controller
(d) penalty for obscenity
Ans. (b) residuary penalty for contraventions of rules, regulations, directions or orders for which no separate penalty is provided — Explanation: Section 45 covers residual contraventions. [Ref: Section 45]
5. After the Jan Vishwas amendment, the residuary penalty under Section 45 may extend to
(a) ₹1 lakh
(b) ₹25,000
(c) ₹5 crore
(d) ₹10 lakh
Ans. (a) ₹1 lakh — Explanation: The penalty was raised from ₹25,000 to ₹1 lakh. [Ref: Section 45 as amended]
6. Under Section 45 as amended, compensation payable by an intermediary, company or body corporate may extend to
(a) ₹1 crore
(b) ₹1 lakh
(c) ₹25,000
(d) ₹10 lakh
Ans. (d) ₹10 lakh — Explanation: For other persons the cap is ₹1 lakh. [Ref: Section 45 as amended]
7. Under Section 45 as amended, compensation payable by a person other than an intermediary, company or body corporate may extend to
(a) ₹10 lakh
(b) ₹50,000
(c) ₹25,000
(d) ₹1 lakh
Ans. (d) ₹1 lakh — Explanation: Section 45 distinguishes between entities and other persons. [Ref: Section 45 as amended]
8. Under Section 46, adjudicating officers are appointed by
(a) CERT-In
(b) the Supreme Court
(c) the Central Government
(d) the Controller
Ans. (c) the Central Government — Explanation: Section 46(1) provides for appointment. [Ref: Section 46(1)]
9. An adjudicating officer shall be an officer not below the rank of
(a) Under Secretary
(b) Additional Secretary
(c) Director to the Government of India or an equivalent officer of a State Government
(d) Joint Secretary
Ans. (c) Director to the Government of India or an equivalent officer of a State Government — Explanation: Section 46(1) prescribes the minimum rank. [Ref: Section 46(1)]
10. In practice, the Secretary of the Information Technology Department of each State is designated as
(a) the Controller
(b) the Certifying Authority
(c) the CERT-In head
(d) the adjudicating officer for that State
Ans. (d) the adjudicating officer for that State — Explanation: The Central Government notified State IT Secretaries as adjudicating officers. [Ref: Section 46]
11. An adjudicating officer has jurisdiction where the claim for damage does not exceed
(a) ₹5 crore
(b) ₹1 crore
(c) ₹10 crore
(d) ₹50 lakh
Ans. (a) ₹5 crore — Explanation: Section 46(1A) gives adjudicating officers jurisdiction up to ₹5 crore. [Ref: Section 46(1A)]
12. Where the claim exceeds ₹5 crore, jurisdiction vests with
(a) the Controller
(b) CERT-In
(c) the competent court
(d) the TDSAT directly
Ans. (c) the competent court — Explanation: The proviso to Section 46(1A) provides this. [Ref: Section 46(1A)]
13. After the Jan Vishwas amendment, the adjudicating officer's power under Section 46(1) extends to contraventions
(a) only under Chapter IX
(b) only under Section 43
(c) under the Act, not only under Chapter IX
(d) only under rules
Ans. (c) under the Act, not only under Chapter IX — Explanation: "Under this Chapter" was replaced by "under this Act". [Ref: Section 46(1) as amended]
14. Under Section 46(2), the adjudicating officer shall give the person a reasonable opportunity of
(a) paying immediately
(b) making representation, and after inquiry may impose penalty or award compensation
(c) appealing to the police
(d) refusing to appear
Ans. (b) making representation, and after inquiry may impose penalty or award compensation — Explanation: Section 46(2) requires an inquiry and hearing. [Ref: Section 46(2)]
15. An adjudicating officer must possess experience in
(a) only medicine
(b) the field of information technology and legal or judicial experience as prescribed
(c) only police work
(d) only banking
Ans. (b) the field of information technology and legal or judicial experience as prescribed — Explanation: Section 46(3) prescribes qualifications. [Ref: Section 46(3)]
16. Proceedings before an adjudicating officer are deemed to be
(a) informal meetings
(b) judicial proceedings for certain purposes, and the officer has powers of a civil court
(c) legislative proceedings
(d) criminal trials
Ans. (b) judicial proceedings for certain purposes, and the officer has powers of a civil court — Explanation: Section 46(5) confers civil court powers and judicial status for specified purposes. [Ref: Section 46(5)]
17. Under Section 47, while adjudging the quantum of compensation, the adjudicating officer shall have regard to
(a) the political status of the victim
(b) the size of the company only
(c) the income of the officer
(d) the amount of gain or unfair advantage, the amount of loss caused, and the repetitive nature of the default
Ans. (d) the amount of gain or unfair advantage, the amount of loss caused, and the repetitive nature of the default — Explanation: Section 47 lists these factors. [Ref: Section 47]
18. Which section provides the factors for adjudging compensation?
(a) Section 46
(b) Section 45
(c) Section 47
(d) Section 44
Ans. (c) Section 47 — Explanation: Section 47 applies. [Ref: Section 47]
19. Consider: (i) The residuary penalty under Section 45 is now up to ₹1 lakh. (ii) Adjudicating officers decide claims of any value. Which is correct?
(a) Only (i)
(b) Only (ii)
(c) Both (i) and (ii)
(d) Neither (i) nor (ii)
Ans. (a) Only (i) — Explanation: Claims above ₹5 crore go to the competent court. [Ref: Sections 45 and 46]
20. A company suffered loss of ₹2 crore from hacking of its server. The claim for compensation lies before
(a) the TDSAT directly
(b) the Controller
(c) the High Court directly
(d) the adjudicating officer under Section 46
Ans. (d) the adjudicating officer under Section 46 — Explanation: Claims up to ₹5 crore lie before the adjudicating officer. [Ref: Section 46(1A)]
21. The Jan Vishwas amendment also omitted the words "injury or" from Section 46(1A). Its effect is that the threshold refers to
(a) claims for damage
(b) claims for injury and damage
(c) Government losses only
(d) criminal fines
Ans. (a) claims for damage — Explanation: The amended provision speaks of claims for damage. [Ref: Section 46(1A) as amended]
22. Assertion (A): Many contraventions under the IT Act now attract civil penalties decided by adjudicating officers instead of criminal prosecution. Reason (R): The Jan Vishwas Act, 2023 decriminalised several provisions and widened Section 46 to cover contraventions under the whole Act.
(a) Both A and R are true and R is the correct explanation of A
(b) Both A and R are true but R is not the correct explanation of A
(c) A is true but R is false
(d) A is false but R is true
Ans. (a) Both A and R are true and R is the correct explanation of A — Explanation: The reason explains the assertion. [Ref: Jan Vishwas Act, 2023]
23. An appeal against the order of an adjudicating officer lies to
(a) the Supreme Court directly
(b) the Appellate Tribunal, that is, TDSAT
(c) the Controller
(d) CERT-In
Ans. (b) the Appellate Tribunal, that is, TDSAT — Explanation: Section 57 provides the appeal. [Ref: Section 57]
24. Under Section 64, a penalty or compensation not paid shall be recovered
(a) as arrears of land revenue
(b) by arresting the person immediately
(c) by attaching passports
(d) by blocking websites
Ans. (a) as arrears of land revenue — Explanation: Section 64 provides recovery as an arrear of land revenue. [Ref: Section 64]
25. Under Section 64, until a penalty is paid, the licence or Electronic Signature Certificate of the defaulter
(a) shall be unaffected
(b) shall be suspended
(c) shall be renewed
(d) shall be transferred
Ans. (b) shall be suspended — Explanation: Section 64 provides for suspension till the penalty is paid. [Ref: Section 64]
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These questions are prepared for practice from the Information Technology Act, 2000 as amended (including the 2008 amendment, the Jan Vishwas Act, 2023 and the DPDP Act, 2023), the IT Rules, 2021 with amendments up to 2026, and the CERT-In Directions. Check the latest notifications from MeitY before relying on any detail.