How the penalty works.
| Type | When it applies | Penalty |
|---|---|---|
| Under-reporting | Assessed income is higher than reported income | 50% of the tax on the under-reported income |
| Misreporting | For example, false entries, suppressed facts or unrecorded investments | 200% of the tax on that income |
From 1 April 2026 the Income-tax Act, 2025 has renumbered these provisions. Notices for tax years before 2026-27 still refer to the Income-tax Act, 1961 sections, which is why this page uses them. We check which Act applies to your notice.
Getting immunity.
In under-reporting cases, you can apply for immunity from the penalty within one month of receiving the assessment order. You must pay the tax and interest by the date in the demand notice and not appeal against the order. Immunity is not available for misreporting.
Immunity means giving up the right to appeal the addition. If the addition is wrong, an appeal may be better. We compare both before the one-month deadline.
How we help.
The assessment order
Is the addition right? Is it under- or misreporting?
Immunity or contest
With the numbers for each route.
Apply or reply
Immunity application, or a reply to the show-cause notice.
If levied
To the Commissioner (Appeals) and the Tribunal. See Appeal to Commissioner of IT.
Why clients trust us with notices.
We read the notice, the AIS and your return together before advising.
Deadlines tracked from the day you send us the notice.
What the notice means, what is at stake and what we recommend.
Most proceedings are handled online, so you never need to travel to India.
Replies and representation by Chartered Accountants.
A written scope and fee before we start.
Penalty support for clients across the UK.
We handle Indian income tax notices for NRIs, returning Indians and UK-owned businesses throughout the UK. Faceless proceedings are online, so it makes no difference where you live.
London
South East
Midlands
North of England
East and South West
Scotland, Wales, NI
Section 270A FAQs.
Penalty proposed after an assessment?
Contact us quickly. We will compare immunity and appeal before the deadline.
This page is general guidance based on the Income-tax Act, 2025 and the rules and return forms as they stand. It is not legal or financial advice for your situation. Forms, eligibility and due dates can change each year, so please check with us before filing.