Under reporting of income and misreporting of income

This query is : Resolved

suhasinid1989

suhasinid1989 (Querist)
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05 February 2020 Hi sir/madam
How to differentiate between under reporting and misreporting of income?
My understanding on this as follow;
When recorded income is less than the actual income then it turns to be under reported income and later it will go for a test of misreporting u/s 270A(9)(a) to 270A(9)(f), if such under reported income satisfy any one of the limb under 27A(9) then it shall tuned to be under reporting of income due to misreporting of income and penalty shall be 200% of the tax liability.
If such under reported income does not satisfy 270A(9) than it will be under reporting of income by standalone accordingly penalty shall be 50% of the tax liability provided recorded income is less than actual income.

So finally we can say that ;
recorded income < actual income = URI and it will go for a test of misreporting u/s 270A(9), if non of the limb get attracted from 270A(9)(a) to 270A(9)(f) then it will be under reporting of income and penalty shall be 50% of tax payable.

Is this my view is correct? if not please correct me ASAP

Thank you in advance

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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05 February 2020 Yes your view is right.
In case of under reporting simpliciter, the quantum of penalty is 50% of tax payable on under reported income. However, section prescribes that if this under reporting is due to mis-reporting, the quantum of penalty shall get quadrupled to 200%.

suhasinid1989

suhasinid1989 (Querist)
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05 February 2020 Thank you so much for your quick reply

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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05 February 2020 Welcome..................

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