Section 270A → Section 340
Penalty for under-reporting and misreporting of income
Quick Answer
Section 270A of the Income Tax Act, 1961 (Penalty for under-reporting and misreporting of income) corresponds to Section 340 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective 1st April 2026. Status: Retained.
Sec 270A
Provision Summary
Penalty of 50% for under-reporting and 200% for misreporting (concealment) of income.
Sec 340
Provision Summary
Retained. The bedrock of penalty proceedings after any scrutiny/reassessment.
Key Changes & Highlights
- Immunity from penalty can be applied for under Section 270AA if tax and interest are paid within the notice period.
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Frequently Asked Questions
What does Section 270A of the Income Tax Act 1961 deal with?
Section 270A (Penalty for under-reporting and misreporting of income) Penalty of 50% for under-reporting and 200% for misreporting (concealment) of income.
What is the new section number for Section 270A under the Direct Tax Code 2025?
Section 270A of the ITA 1961 maps to Section 340 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective from 1st April 2026.
What is the status of Section 270A under the new tax code?
Section 270A is marked as "Retained" with status "Active". Impact: Critical - The biggest financial risk for a taxpayer during an audit.
What are the key changes to Section 270A under DTC 2025?
Immunity from penalty can be applied for under Section 270AA if tax and interest are paid within the notice period.
Disclaimer: This page is for educational and reference purposes only. Section mappings are based on publicly available drafts and circulars. Always consult a qualified Chartered Accountant before filing or making compliance decisions under the Direct Tax Code 2025.
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