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Compliance · effective 1 April 2026

Section 271 under the
Income-tax Act, 2025

Penalty for concealment of income / furnishing inaccurate particulars

Income-tax Act, 1961
271
Income-tax Act, 2025
NO CORRESPONDING PROVISION
ConfirmedSubstance changedTaken from the ICAI Direct Taxes Committee concordance and independently checked against the bare statutory text of the Income-tax Act, 2025.

Topic

Penalty for concealment of income / furnishing inaccurate particularsCompliance provisions under the Income-tax Act, 2025 (Act 30 of 2025).

What changed

SUBSTANTIVE, but with an important caveat: there is no equivalent of 1961 s.271(1)(c) in the 2025 Act. This is not really a new policy change — s.271 was already made inoperative for AY 2017-18 onwards by the 1961 Act itself, having been superseded by s.270A. The 2025 Act simply does not carry the dead provision forward. Under-reporting/misreporting penalty is now exclusively s.439. Note that the lettered 271-series penalties DO survive: 271A -> 441, 271AA -> 442, 271AAC -> 443, 271AAD -> 444, 271AAE -> 445, 271B (tax audit failure) -> 446, 271BA -> 447, 271C (TDS failure) -> 448, 271CA -> 449, 271D -> 450, 271DA -> 451, 271DB -> 452, 271E -> 453, 271FA -> 454, 271H -> 461, 271J -> 463, 272A -> 465.

Source

The ICAI concordance table contains no row mapping plain s.271; the 2025 Act's penalty chapter (ss.439-472) jumps from 270A/270AA (ss.439/440) to 271A (s.441). A full-text search of the 818-page bare Act found no concealment-penalty provision — the only hits for 'concealment of income' are in s.246 (inquiry powers) and s.519 (immunity from prosecution).

Open the source document →

CBDT publishes its own correspondence utility on incometaxindia.gov.in and that is the authority. Spot-check anything high-stakes there before you rely on it.

Frequently asked

Is there a concealment penalty in the Income-tax Act, 2025?

No. There is no equivalent of 1961 Section 271(1)(c). That is less dramatic than it sounds: Section 271 was already inoperative for AY 2017-18 onwards under the 1961 Act, having been superseded by Section 270A. Under-reporting and misreporting penalty is now exclusively Section 439.

Do the lettered 271-series penalties survive?

Yes. 271A becomes 441, 271AA becomes 442, 271AAC becomes 443, 271AAD becomes 444, 271AAE becomes 445, 271B becomes 446, 271BA becomes 447, 271C becomes 448, 271CA becomes 449, 271D becomes 450, 271DA becomes 451, 271DB becomes 452, 271E becomes 453, 271FA becomes 454, 271H becomes 461, 271J becomes 463 and 272A becomes 465.

Still cite section 271 for
Income earned up to 31 March 2026 — that is FY 2025-26, Assessment Year 2026-27, governed by the Income-tax Act, 1961 even though you file it during 2026.
Cite the new Act for
Income earned from 1 April 2026 — Tax Year 2026-27 onwards, governed by the Income-tax Act, 2025. Tax deducted on payments made on or after 1 April 2026 must be reported under the new section 393 table references and new challan/return codes. Quoting a legacy section such as 194C or 194J triggers validation failure.
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270A · Penalty for under-reporting and misreporting of income
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This is a navigational aid for the 1961 → 2025 transition, not tax advice. It helps you find the right place in the new Act when you already know the old section. Confirm every citation against the bare Act and against CBDT's own correspondence utility before relying on it in a return, certificate, notice reply or opinion. The source text used here is the Act as passed, so any rate or threshold amended by the Finance Act, 2026 is not reflected; section numbers are unaffected.

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