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ITA 2025 regimeAct — chapter commentaryVolume XXI1 min read

ITA 2025 — Chapter XXI commentary (Vol XXI)

Chapter XXI

CHAPTER XXI — PENALTIES INCOME-TAX ACT, 2025 INCOME-TAX ACT, 1961 s. 439 — Under-/mis-reporting (50%/200%) s. 270A s. 441 — Audit default (0.5% of turnover) s. 271B s. 442 — TDS / TCS non-deduction s. 271C / 271CA s. 443 — Cash transactions (s. 269SS/ST) s. 271D / 271DA s. 444 — Electronic mode…

CHAPTER XXI — PENALTIES

Chapter XXI — At a Glance

INCOME-TAX ACT, 2025

INCOME-TAX ACT, 1961

s. 439 — Under-/mis-reporting (50%/200%)

s. 270A

s. 441 — Audit default (0.5% of turnover)

s. 271B

s. 442 — TDS / TCS non-deduction

s. 271C / 271CA

s. 443 — Cash transactions (s. 269SS/ST)

s. 271D / 271DA

s. 444 — Electronic mode (s. 269SU)

s. 271DB

s. 451 — Search undisclosed (30%/60%)

s. 271AAB

s. 452 — s. 198 cash credit (10% extra)

s. 271AAC

s. 453 — False entry / omission (FA 2020)

s. 271AAD

s. 471 — Reasonable cause defence

s. 273B

Practitioner notes

  • Section 439 (s. 270A): two-tier — under-reporting 50% / mis-reporting 200%; immunity available under 270AA if tax+interest paid + no appeal.
  • Section 471 (s. 273B): reasonable cause defence available for most non-439 penalties; document bona fides.
  • Section 452 (s. 271AAC): on top of 78% tax under s. 198 — total exposure dramatic.
  • Section 473 (s. 275): observe 6-month / 1-year limitation; raise plea if AO is out of time.
  • Coordinate with Black Money Act, 2015 for foreign-asset cases — separate penalty regime there.
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