Penalty for under-reporting: new regime allows tax authorities to levy penalties based on tax attributable to under-reported income. A new provision establishes a dedicated penalty framework for under-reporting and misreporting of income, empowering tax authorities to levy a penalty in addition to tax where assessed income exceeds amounts determined on return processing, the non-taxable threshold absent a return, prior assessments, or arises from deemed total income or conversion of loss. It prescribes methods to quantify under-reported income for first assessments, reassessments and deemed income cases, allocates receipts to prior years when linked to earlier deductions, lists exclusions for bona fide explanations and compliant transfer pricing adjustments, and prescribes penalty rates tied to the tax on under-reported income with elevated rates for specified misreporting conduct.