Section 469 - Power to reduce or waive penalty, etc., in certain cases.

Tax authority may reduce or waive concealment penalties for voluntary full disclosure, cooperation, payment; approvals needed for high amounts

The tax authority may, at its discretion, reduce or waive penalties for concealment if the taxpayer voluntarily made full and true disclosure before detection, cooperated in enquiries, and has paid or arranged to pay tax/interest; a disclosure is deemed full if the discrepancy would not attract penalties. If the aggregate concealed income exceeds Rs.500,000 prior approval from senior officials is required before relief. On application, the authority may reduce, waive, stay, or compound penalties to prevent genuine hardship provided the taxpayer cooperates; prior approval is needed where aggregate relief exceeds Rs.100,000. Decisions must be issued within 12 months, with a hearing, and are final and non-justiciable.