Comparison of section 443 'Penalty in respect of certain income.' between the Income-Tax Act, 2025 (as passed) and the Income-Tax Bill, 2025 (as originally introduced)

Unclear recovery rules after 10% discretionary penalty under section 195(1)(i) for income within sections 102-106

A discretionary 10% penalty on tax under section 195(1)(i) is imposed where assessed income includes amounts falling within sections 102-106, payable in addition to tax; no penalty applies if the income was disclosed in the return under section 263 and tax paid in the relevant year, and section 439 penalties cannot be imposed for the same income. The Bill originally included an express cross-application of procedural sections 471 and 472 and an explanatory sentence identifying cash credits, unexplained investments/expenditure and hundi transactions; the enacted provision omits those elements, creating procedural and interpretive uncertainty about applicable recovery and procedural rules.