BharatTax.co — Knowledge Portal
File GST ↗
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. 443 — s. 195 cash credit (10% extra; omitted by FA 2026 from 1-4-2026)

s. 271AAC

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

s. 271AAD

s. 471 — Reasonable cause defence

s. 273B

Practical points

  • Section 439 (s. 270A): two-tier — under-reporting 50% / mis-reporting 200%; immunity / waiver under s. 440 (s. 270AA) if tax+interest paid + no appeal; after FA 2026, misreporting cases also need additional income-tax of 100% (120% for s. 439(11)(g)) of the tax on under-reported income.
  • Section 471 (s. 273B): reasonable cause defence available for most non-439 penalties; bona fides are a matter of evidence.
  • Section 443 (s. 271AAC): 10% of the tax under s. 195, on top of the 78% effective tax; s. 443 omitted by FA 2026 from 1-4-2026.
  • Section 473 (s. 275): 6-month / 1-year limitation; an order passed out of time is barred.
  • The Black Money Act, 2015 governs foreign-asset cases — separate penalty regime there.
← All ITA 2025 commentaryAct 2025 hub