Under-reporting
Income assessed is higher than reported.
- Penalty50% of the tax
- ImmunityPossible
- DefenceBona fide explanation
Best for: Honest differences
Chartered Accountants in India, working with clients across Europe
Chartered Accountants in India, working with clients across Europe
When assessed income exceeds what you reported, a penalty can follow: 50% of the tax for under-reporting, 200% for misreporting. Immunity and defences exist. Estimate the exposure.
An estimate on a flat rate. The actual tax is worked out under the rules for your case.
Income assessed is higher than reported.
Specific wrongful acts.
Hiding material information.
Assets left out of the books.
Claims with no evidence.
Recorded transactions that are not real.
Income kept out of the books.
Not reporting international transactions.
With penalty initiated for under-reporting.
Within the time in the demand notice.
From the end of the month the order is received.
You can’t appeal the additions as well.
Immunity granted or refused by order.
The limb, under- or misreporting, must be specified.
A genuine explanation with full disclosure.
Penalty applies only to the excess.
Weigh the options with you.
To the CIT(A) and ITAT.
Related pages.
We handle under-reporting penalties for clients in every EU country, Switzerland and Norway.
Send us the assessment and penalty notice. We’ll compare immunity, defence and appeal for you.
General guidance based on the rules as they stand, including the Income-tax Act, 2025 and the Income-tax Rules, 2026. It is not legal, tax or financial advice for your situation; please contact us before acting on it.