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CA Final Undisclosed Income and Assets, Penalties, Offences and Prosecution — practice questions

Explore 52 free Undisclosed Income and Assets, Penalties, Offences and Prosecution questions in CA Final Taxation. Open each question or exercise to read its content, reference answers and available explanation.

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Undisclosed Income and Assets, Penalties, Offences and Prosecution questions and exercises with answers

Showing questions 1–30 of 52.

Which section of the Income-tax Act, 1961 levies penalty for under-reporting and misreporting of income?Read the answer and worked solution →The ordinary penalty on under-reported income under section 270A is what share of the tax payable on it?Read the answer and worked solution →Where misreporting is involved, 270A penalty is what share of tax?Read the answer and worked solution →From which assessment year does section 270A apply, replacing section 271(1)(c) for new assessments?Read the answer and worked solution →Section 270A(1) penalty power is described as what?Read the answer and worked solution →Which is a listed case of misreporting under section 270A(9)?Read the answer and worked solution →Recording a false entry in the books of account is treated under section 270A as what?Read the answer and worked solution →Under 270A, failing to report a Chapter X transaction is what?Read the answer and worked solution →A penalty order under section 270A must be passed in what form?Read the answer and worked solution →If an addition already led to a penalty, section 270A(11) says what?Read the answer and worked solution →Under 270A(2)(a), assessed income is compared with income under which section?Read the answer and worked solution →Under 270A, an assessment that cuts the loss claimed is what?Read the answer and worked solution →Under 270A(6)(a), what excludes income from under-reporting?Read the answer and worked solution →Undisclosed income referred to in which section is excluded from under-reported income under section 270A(6)?Read the answer and worked solution →An arm's length addition is excluded if documents kept under which section?Read the answer and worked solution →Before section 270A took effect, penalty for concealment of income was levied under which provision?Read the answer and worked solution →Which section lets an unexplained sum credited in the assessee's books be taxed as income of that year?Read the answer and worked solution →Section 68 applies to a credit received how?Read the answer and worked solution →Which section deals with investments not disclosed in the books that the assessee cannot satisfactorily explain?Read the answer and worked solution →Unexplained ownership of money, bullion or jewellery not recorded in books is covered by which section?Read the answer and worked solution →Under section 69B, what may be deemed income of the year?Read the answer and worked solution →Which section taxes unexplained expenditure incurred by the assessee?Read the answer and worked solution →Can unexplained expenditure under section 69C be claimed as a deduction?Read the answer and worked solution →Section 69D deals with amounts borrowed or repaid on which instrument?Read the answer and worked solution →Which section prescribes the special tax rate on income deemed under sections 68 to 69D?Read the answer and worked solution →From AY 2017-18, 115BBE taxes unexplained income at what basic rate?Read the answer and worked solution →Tax at 60%, surcharge 25% of tax, cess 4% on both: what is the effective rate?Read the answer and worked solution →Under 115BBE, what applies to expenditure and loss set-off?Read the answer and worked solution →Which section adds an extra penalty on 115BBE tax for unreported income?Read the answer and worked solution →The section 271AAC penalty equals what share of tax payable under section 115BBE?Read the answer and worked solution →

Worked practice questions

Which section of the Income-tax Act, 1961 levies penalty for under-reporting and misreporting of income?

  1. Section 276C
  2. Section 271AAB
  3. Section 271D
  4. Section 270A
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Correct answer: D. Section 270A

Section 270A, inserted from AY 2017-18, is the provision that penalises under-reported and misreported income.

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The ordinary penalty on under-reported income under section 270A is what share of the tax payable on it?

  1. 25 percent
  2. 200 percent
  3. 100 percent
  4. 50 percent
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Correct answer: D. 50 percent

Section 270A(7) fixes the base penalty at half of the tax payable on the under-reported income.

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Where misreporting is involved, 270A penalty is what share of tax?

  1. 50 percent
  2. 100 percent
  3. 150 percent
  4. 200 percent
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Correct answer: D. 200 percent

Section 270A(8) raises the penalty to four times the base rate, that is 200 percent of the tax on the misreported income.

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