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 Income-tax Act, 2025, effective 1st April 2026. Status: Retained.
What changed for Section 270A
In the 1961 statute, Section 270A deals with penalty for under-reporting and misreporting of income. Penalty of 50% for under-reporting and 200% for misreporting (concealment) of income.
Under the Income-tax Act, 2025 (effective 1st April 2026), Section 270A is retained and renumbered as Section 340 of the Income-tax Act, 2025. Retained. The bedrock of penalty proceedings after any scrutiny/reassessment.
The transition impact on Section 270A is assessed as Critical. The biggest financial risk for a taxpayer during an audit.
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
Which subject does Section 270A of the 1961 Act cover?
Section 270A of the Income Tax Act, 1961 covers 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 Income-tax Act, 2025?
Section 270A of the Income Tax Act, 1961 maps to Section 340 of the Income-tax Act, 2025, effective 1st April 2026 (status: Retained). Retained. The bedrock of penalty proceedings after any scrutiny/reassessment.
How does the Income-tax Act, 2025 affect Section 270A in practice?
The transition impact for Section 270A is rated Critical. The biggest financial risk for a taxpayer during an audit.
What is new about Section 270A under the Income-tax Act, 2025?
Immunity from penalty can be applied for under Section 270AA if tax and interest are paid within the notice period. These points are specific to Section 270A (Penalty for under-reporting and misreporting of income).
Disclaimer: This mapping of Section 270A (Penalty for under-reporting and misreporting of income) to Section 340 of the Income-tax Act, 2025 is for educational and reference purposes only, based on publicly available drafts and circulars. As Section 270A is currently marked Retained, always confirm its treatment with a qualified Chartered Accountant before filing or making compliance decisions.
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