Section 74A - Determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised for any reason pertaining to Financial Year 2024-25 onward

Officer must issue show-cause notice within 42 months for unpaid/short/erroneous tax from FY 2024-25; penalties and payment windows apply

Where a proper officer believes tax is unpaid, short paid, erroneously refunded or input tax credit wrongly availed for FY 2024-25 onward, a show-cause notice must be issued to the person chargeable (unless amount < ?1,000). Notice must be issued within 42 months from the annual-return due date or erroneous refund. After representation, the officer determines tax, interest and penalty and issues an order within 12 months (extendable by up to 6 months). Penalties: 10% of tax or ?10,000 (non-fraud) or full tax (fraud). Specified pre-notice and post-notice payment windows reduce or extinguish penalties; certain proceedings are excluded.