On which amount 200% penalty under section 270A is calculated

my income tax return for AY 24-25 was taken up for scrutiny. an additional tax of rs.1.20 lakh including surcharge/cess plus rs. 0.17 lakh towards late/short payment totalling rs. 1.37 lakh was been imposed. this was duly paid without going in for appeal. now i have received order of 200% penalty i.e. rs. 2.74 lakh has been imposed. (Amounts rounded off)

My question is whether 200% should be of rs. 1.20 lakh or rs 1.37 lakh? If it is former case, how to get it corrected? I don't intend to file any appeal for imposition of 200% penalty...just want rectification of mechanical calculation, if it's incorrect.

Thanks for clarification in anticipation.

Replies (2)
Quick Summary
This discussion clarifies the calculation of the 200% penalty under Section 270A of the Income Tax Act. The penalty is calculated solely on the additional tax amount, not the total demand including interest or late payment charges. The user received an incorrect penalty calculation and sought guidance on rectifying this arithmetical error without filing an appeal.

The 200% penalty under Section 270A applies exclusively to the tax amount of ₹1.20 lakh, not the total demand including interest. The correct penalty figure is ₹2.40 lakh, meaning an excess of ₹0.34 lakh was levied. This arithmetical error can be corrected directly by filing an online rectification under Section 154 on the e-Filing portal without initiating an appeal.

Thank you for the quick clarification.

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