Clause 61 - Amendment of section 270A.

Under-reporting penalty: returns filed for the first time on reopening treated as triggering penalty when assessed income exceeds non-taxable threshold.

The amendment treats returns furnished for the first time in reopened assessments as equivalent to non-filing for imposition of penalty, substituting statutory text so that under-reporting is triggered where assessed income exceeds the maximum amount not chargeable to tax. For companies, firms or local authorities under-reported income is the assessed income; for others it is the excess over the maximum non-taxable amount. Tax on under-reported income is computed by adding the maximum non-taxable amount to the under-reported income as if it were total income.