A resident individual fails to furnish a return and is assessed on under-reported income. Assume section 439 applies, there is no misreporting, no exception applies and the tax payable on the…
Question and options
A resident individual fails to furnish a return and is assessed on under-reported income. Assume section 439 applies, there is no misreporting, no exception applies and the tax payable on the under-reported income as computed under the section is ₹1,66,400. What is the penalty?
₹83,200
₹3,32,800
Nil
₹1,66,400
Answer and explanation
Section 439(9) of the Income-tax Act, 2025 sets the penalty for under-reporting at 50% of the tax payable on the under-reported income, so the penalty is ₹83,200. The 200% rate of section 439(10), giving ₹3,32,800, applies only where the under-reporting results from misreporting.
Practice for these exams
-
All India Bar Examination (AIBE)
Subject revision
See pack details on LawMint.net -
IIT Kharagpur LL.M. Entrance
Subject revision
See pack details on LawMint.net -
CLAT PG
Subject revision for a passage-based exam
-
AILET PG
Subject revision
Related exam syllabi
More solved explanations in Income tax - assessment, appeals, penalties & prosecution
- Under section 356 of the Income-tax Act, 2025, which of the following orders can be appealed against before the Joint Commissioner (Appeals)?
- In which case Justice Shah of S.C. observed 'Since by the exercise of the power a serious invasion is made upon the rights, privacy and freedom of the tax payer,…
- Under section 365 of the Income-tax Act, 2025, an appeal to the High Court against an order passed in appeal by the Appellate Tribunal must be filed within
- In which case Justice J.C. Shah of S.C. observed "Since by the exercise of the power a serious invasion is made upon the rights, privacy and freedom of the tax…
- Each of the following has advance tax of ₹50,000 computed for tax year 2026-27, after allowing for tax deducted at source. Who is not liable to pay advance tax…