Penalty Calculator u/s 270A: Under-reporting and Misreporting

50% of the tax payable on under-reported income (s.270A(7)). Where the under-reporting is in consequence of misreporting, 200% of the tax on that part (s.270A(8)).

In the general case (a return was filed, or income was determined or assessed in an earlier order): the tax on the reported or earlier determined income plus the under-reported income, less the tax on the reported or earlier determined income (s.270A(10)(c)). Where the income determined or assessed earlier is a loss: the tax on the under-reported income as if it were the total income. Where no return was filed, or a return was first furnished in response to a s.148 notice, and the income is assessed for the first time: the tax on the under-reported income plus the maximum amount not chargeable to tax, as if it were the total income.

The cases listed in s.270A(9): misrepresentation or suppression of facts, failure to record investments in the books, claiming expenditure not substantiated by evidence, recording a false entry, failure to record a receipt that affects total income, and failure to report an international or specified domestic transaction.

Under s.270AA, only where the order is an assessment u/s 143(3) or a reassessment u/s 147, and only for under-reporting (not misreporting): pay the tax and interest in the demand within the period in the notice, do not appeal, and apply within one month from the end of the month in which the order is received. The AO passes an order on the application within one month from the end of the month in which it is received.

The notice and the order should state the limb and the s.270A(9) case relied on. A notice that does not say which charge is made is a common ground in the reply and the appeal.