The Statutory Brief

IT Act 1961 → 2025 / Section 270A

Penalties

Section 270A → Section 439

Penalty for under-reporting and misreporting of income

Section 270A of the old Income-tax Act, 1961 · new section 439 under the Income-tax Act, 2025

New reference Section 439

Income-tax Act, 1961Section 270A

  • Penalty of 50% of tax on under-reported income
  • 200% where under-reporting is due to misreporting
  • Specified cases of misreporting (suppression, false entries, unrecorded receipts, etc.)
  • Immunity route under section 270AA

Applies to FY 2025-26 (AY 2026-27) and earlier years.

Income-tax Act, 2025Section 439

  • Same penalty, now section 439
  • 50% of tax payable on under-reported income (439(9))
  • 200% where it results from misreporting (439(10))
  • Under-reported income measured against income determined under section 270(1)(a)

Applies from tax year 2026-27 (from 1 April 2026).

What changed

Renumbered and redrafted; rates and the under-reporting/misreporting structure are unchanged. Penalties are imposed by the 'Competent Authority'.

Practice notes

  • Penalty proceedings for AY 2026-27 and earlier continue under section 270A.
  • Check the new immunity provision corresponding to old 270AA before accepting an assessment.

These are summaries, not the statutory text. Read the bare Act for both sections on the Income Tax Department's official site, which also has a side-by-side comparison utility.

Frequently asked

What is the penalty for under-reporting income under the new Income Tax Act 2025?

Section 439: 50% of the tax on under-reported income, and 200% where the under-reporting arises from misreporting.

What is section 270A called in the new Income-tax Act, 2025?

Section 270A of the Income-tax Act, 1961 corresponds to Section 439 of the Income-tax Act, 2025, which applies from 1 April 2026 (tax year 2026-27).

What changed in section 270A under the new Income Tax Act?

Renumbered and redrafted; rates and the under-reporting/misreporting structure are unchanged. Penalties are imposed by the 'Competent Authority'.

Is section 270A still applicable for FY 2025-26?

Yes. Income of FY 2025-26 (AY 2026-27) and earlier years is governed by section 270A of the 1961 Act. Section 439 of the 2025 Act applies from tax year 2026-27.

Related sections

143→270Processing of returns (intimation) and scrutiny assessment147→279Income escaping assessment: power to assess or reassess68→102Unexplained cash credits in the books of account