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Immunity now possible for misreporting cases

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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.

Provisions

Sec 270AA (now Sec 440); Sec 270A (now Sec 439); Finance Act 2026, amendment to Sec 270AA

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.

Close

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

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Connect nowPay and start: Penalty notice, Sec 270A / 274 (now 439 / 471), ₹4,999

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