Compute statutory penalties for under-reporting (50%), misreporting of income (200%) under Section 270A, and late ITR filing fees under Section 234F.
Immunity from Section 270A penalty can be applied via Form 68 within 1 month of receiving order under Section 270AA.
The Income Tax Act, 1961 enforces stringent monetary penalties for non-compliance, concealment, and tax evasion. Section 270A is the primary penalty mechanism for under-reporting and misreporting of income.
Under-Reporting (50% Penalty): Occurs where assessed income is greater than processed return income due to bona-fide omissions or disallowances.
Misreporting (200% Penalty): Involves misrepresentation, suppression of facts, false entries in books, failure to record investments, or fake expense claims.
Assessees can apply for 100% waiver of under-reporting penalty and immunity from prosecution under Section 270AA by filing Form 68 within 1 month of receiving assessment order, provided they pay the demanded tax and do not file an appeal.
| Section | Default Nature | Statutory Penalty Amount |
|---|---|---|
| Section 270A(1) | Under-reporting of income | 50% of tax payable on under-reported income |
| Section 270A(8) | Misreporting of income (Fraud / Fake Books) | 200% of tax payable on misreported income |
| Section 234F | Late filing of ITR beyond due date | ₹5,000 (or ₹1,000 if total income ≤ ₹5 Lakhs) |
| Section 271B | Failure to get Tax Audit done u/s 44AB | 0.5% of turnover or ₹1,50,000 (Lower) |
If total income is below the basic exemption limit (₹2.5L / ₹3L) and return is filed voluntarily after due date, Section 234F fee is not levied.
Yes. If additions are made during Section 143(3) scrutiny or Section 147 reassessment, the Assessing Officer typically initiates penalty proceedings under Section 270A.
Penal interest under Section 234A (delay in filing), Section 234B (short advance tax), and Section 234C (deferment of installments) applies at 1% per month on the principal tax amount.