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Know what role does section 270 (A) of the IT act has to deal with penalty & ITR
Abhey Narula 11 Nov 2016

Know what role does section 270 (A) of the IT act has to deal with penalty & ITR

People who have deposited an amount of Rs 10 Lakh or more in their bank accounts, which is not matching with their tax returns, are now supposed to pay the tax and also a penalty of 200% on the amount as mentioned in the IT Act.

But there is still some hope. Below we have discussed about the immunities available to save yourself from the penalties and prosecutions according to the provision laid out in the Income Tax Act. But if a person fully cooperates with Income Tax Department in the disclosure of last hidden incomes and gives all the evidences and information needed then AO (Assessing Officer) normally grants immunity as allowable under the IT Act. But the final call on whether to grant it or not depends on the concerned tax Authority.

Section 270 (A): To be immune from the penalty and prosecutions under section 270 (A) and 276C and 276CC, then you need to agree with the income assessed by Assessing Officer under section 147 or 143(3), depending on the case. Accordingly you will have to pay the interest and Tax within the time mentioned in the demand notice under section 156. Later, you will not challenge assessment order by filing an appeal against it. At the end file an application to AO to get immunity from prosecution and penalty. Your Assessing Officer will pass an order while accepting the application when you have complied with above mentioned conditions. With 1 month the order will be given seeking immunity and you will get immunity from penalty and prosecution proceedings.

The Finance ministry will get reports of all the cash deposited during November 10 till December 30 above the 2.5 Lakh per account, which will matched against the ITR linked to that specific account.

 

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