TMI BlogPenalty for under-reporting and misreporting of income - Section 270AX X X X Extracts X X X X X X X X Extracts X X X X ..... der reported his income [ Section 270A (2) ] The amount of under-reported income [ Section 270A(3) ] First Time Assessment (a) In case of Return Filed - The income assessed is greater than the income determined in the return processed u/s 143(1)(a) The difference between the amount of income assessed and the amount of income determined u/s 143(1)(a) (b) In case of Return not Filed - Where no return of income has been furnished and the income assessed is greater than the maximum amount not chargeable to tax (A) The amount of income assessed, in the case of a company, firm or local authority (B) The difference between the amount ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cordance with the provisions of section 115JB or section 115JC , the amount of total under-reported income shall be determined in accordance with the following formula:- (A - B) + (C - D) where, A = the total income assessed as per the provisions other than the provisions contained in section 115JB or section 115JC (herein called general provisions); B = the total income that would have been chargeable had the total income assessed as per the general provisions been reduced by the amount of underreported income ; C = the total income assessed as per the provisions contained in section 115JB or section 115JC; D = the total income that would have been chargeable had the total income assessed as pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 70A(4) be initiated [Section 270A(5)] The amount referred to in section 270A(4) shall be deemed to be amount of income under-reported for the preceding year in the following order- the preceding year immediately before the year in which the receipt, deposit or investment appears, being the first preceding year; and where the amount added or deducted in the first preceding year is not sufficient to cover the receipt, deposit or investment, the year immediately preceding the first preceding year and so on. The under-reported income, for the purposes of this section, shall not include the following, namely [Section 270A(6)]:- Sr. No. Cases Conditions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... disclosed income on account of search Where penalty is leviable u/s 271AAB in respect of such undisclosed income Quantum of Penalty: - For Under Reporting - The penalty for under-reported income shall be a sum equal to 50% of the amount of tax payable on under-reported income [Section 270A(7)]. For Misreporting - Notwithstanding anything contained in section 270A(6) or 270A(7), where under-reported income is in consequence of any misreporting thereof by any person, the penalty referred to in section 270A(1) shall be equal to 200% of the amount of tax payable on under-reported income [Section 270A(8)]. Cases of misreporting of income [Section 270A(9)] The cases of misreporting ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssed or recomputed in a preceding order as if it were the total income; and Y = the amount of tax calculated on the total income determined u/s 143(1)(a) or total income assessed, reassessed or recomputed in a preceding order. In other words it will be tax on total income inclusive of under reported income. No addition or disallowance of an amount shall form the basis for imposition of penalty, if such addition or disallowance has formed the basis of imposition of penalty in the case of the person for the same or any other assessment year. [Section 270A(11)] The penalty referred to in section 270A(1) shall be imposed, by an order in writing, by the Assessing Officer, the Commissioner (Appeals), the Commissioner or the Principa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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