Penalizing False Accounting Entries : Clause 444 of the Income Tax Bill, 2025 Vs. Section 271AAD of the Income-tax Act, 1961

Penalty for false accounting entries: false or omitted entries made to evade tax attract a penalty equal to the entry amount.

Penalty for false or omitted accounting entries applies where entries are material to computation of total income and made with intent to evade tax; penalty equals the aggregate amount of the false or omitted entry, extends to anyone who causes such entries, and covers use or intention to use forged documents, invoices without actual supply/receipt, and invoices involving non existent persons, with Assessing Officer and specified appellate officers empowered to impose the sanction.