TL;DR for CAs
- 270A distinguishes under-reporting and misreporting with different rates.
- Immunity provisions may apply in specified cases.
- Document bona fides during assessment itself.
What it is
Section 270A levies penalty for under-reporting and misreporting of income.
Who it applies to
Assessees facing penalty show-cause after assessments.
Key provisions
- Rate differences
- Exclusions and immunity
- Opportunity of hearing
Practical tips for CAs
Separate quantum appeal strategy from penalty defence. Collect contemporaneous evidence.
Common mistakes
Ignoring reply deadlines; conceding misreporting casually.
For general guidance only. Verify with the latest Finance Act, GST notifications, and ICAI guidance notes before advising clients.