Thursday 17 November 2016

200% Penalty- Section 270A, of The Income Tax Act, 1961

After demonetization of `500 and `1000 currency notes by Government of India the most talked about penal provision is penalty @200% on misreported income. Section 98 of Finance Act 2016 has inserted this new section 270A in Income Tax Act 1961, it provides the procedure to charge penalty for under reporting and misreporting of income. This atrocious penal provision on under reporting and misreporting of income is effective from 1st day of April, 2017 i.e. applicable for financial year 2016-17. 

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