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of <h1>Penalty for Under-Reported Income: 50% of Tax Payable; Misreporting Increases Penalty to 200% Under Section 270A Income Tax Act.</h1> The penalty under section 270A of the Income Tax Act is 50% of the tax payable on under-reported income. If the under-reported income results from misreporting by any person, the penalty increases to 200% of the tax payable on that income.
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