Section-443: Penalty in respect of certain income

Section-443 : Penalty in respect of certain income

Section-443 seeks to provide for imposition of penalty, if the income which includes any cash credits, unexplained investment, unexplained money, unexplained expenditure, amount of investment, etc., not fully disclosed in books of account and amount borrowed or repaid on hundi. Learn to understand the section-443 as it is, it's help and useful links to follow.

Here onwards, "Act" refers to "Income Tax Act 2025"

1. Section-443 as per act

The Assessing Officer or the Joint Commissioner (Appeals) or Commissioner (Appeals) may impose a penalty of 10% of the tax payable under section 195(1)(i), on an assessee if the income determined in his case for any tax year includes any income referred to in section 102, 103, 104, 105 or 106.
The penalty under sub-section (1) shall be payable in addition to the tax payable under section 195.
No penalty shall be levied on income referred to in section 102, 103, 104, 105 or 106 to the extent such income has been included by the assessee in the return of income furnished under section 263 and the tax as per section 195(1)(i) has been paid on or before the end of the relevant tax year.
No penalty under section 439 shall be imposed upon the assessee in respect of income referred to in sub-section (1).
The provisions of sections 471 and 472 shall as far as may be, apply in relation to the penalty referred to in this section.