Answer

1. F

   Facts

   Before 1 March 2026, immunity was not available once misreporting was charged. Finance Act 2026 extended Sec 270AA so that misreporting cases can also get immunity, on paying additional income tax equal to 100% of the tax on the misreported income along with the demand. This applies to orders received on or after 1 March 2026 and to earlier ones whose application window was still open.

2. P

   Provisions and law

   • Sec 270AA (now Sec 440)Immunity from Sec 270A penalty and prosecution on paying tax and interest and not appealing
   • Sec 270A (now Sec 439)Penalty of 50% of tax on under-reported income, or 200% where under-reporting is due to misreporting
   • Finance Act 2026, amendment to Sec 270AAImmunity extended to misreporting cases with additional tax of 100% of the tax on misreported income
3. A

   Analysis

   Compare the costs. If the tax on misreported income is ₹3,00,000, penalty would be ₹6,00,000 at 200%; immunity costs ₹3,00,000 of additional tax plus the demand, and removes prosecution risk under Sec 276C and 276CC. You must give up the appeal. If you have a strong case that there was no misreporting, an appeal may still be better. Check the final text of the amendment before filing.

4. C

   Conclusion

   1. 1Confirm the order date and that it falls within the amended rule
   2. 2Compute the demand plus additional tax of 100% on misreported income
   3. 3Pay within the time allowed in the demand
   4. 4File Form 68 within one month from the end of the month of receipt and do not appeal

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.