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Income declared in an updated return with the additional tax paid is not used to levy Sec 270A penalty. This is one of the reasons to come forward through ITR-U before the department finds the income.
ITR
No penalty on income shown in an updated return
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Provisions
Sec 139(8A) (now Sec 263(6)); Sec 270A (now Sec 439)
Analysis
If you filed ITR-U for AY 2023-24 adding ₹2,00,000 of interest and paid tax with 50% additional tax, that income should not be treated as under-reported for penalty. If a later notice adds something else, penalty can arise on that other amount. Keep the ITR-U acknowledgement and challans ready to show in any proceeding.
Close
- Keep the ITR-U acknowledgement and tax challans
- If a penalty notice mentions ITR-U income, reply pointing to the updated return
- Separate any new addition from the income already declared
- Seek advice before filing ITR-U if a notice is already pending
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