Answer

1. F

   Facts

   For tax year 2026-27 onwards, penalty for under-reporting and misreporting is in Sec 439 of the Income-tax Act 2025 (old Sec 270A), with hearing under Sec 471 (old Sec 274). Budget 2026 also proposed bringing assessment and penalty into a common process to cut down multiple proceedings.

2. P

   Provisions and law

   • Sec 439, Income-tax Act 2025 (old Sec 270A)Penalty for under-reporting and misreporting
   • Sec 471, Income-tax Act 2025 (old Sec 274)Procedure for penalty, with opportunity of hearing
   • Sec 440, Income-tax Act 2025 (old Sec 270AA)Immunity from penalty and prosecution
3. A

   Analysis

   Nothing changes in principle: the rates of 50% and 200% carry over, and immunity is in Sec 440 (old Sec 270AA). The practical change is the numbering on notices from 2027 onwards. If the proposal for a common assessment and penalty order is applied, you may have to answer penalty points during the assessment itself. Keep full disclosure in your return as the main protection.

4. C

   Conclusion

   1. 1Use 2025 Act numbers for tax year 2026-27 matters
   2. 2Keep proofs for every deduction and exemption claimed
   3. 3Disclose debatable claims clearly in the return
   4. 4Watch for any notification on combined assessment and penalty orders

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