SHORT ANSWER:
The penalty for incorrect Income Tax Return (ITR) details can range from ₹5,000 to ₹1,00,000.
DETAILS:
- If the error is detected by the tax authorities, a penalty may be imposed under Section 271(1)(c) of the Income Tax Act, 1961.
- The penalty amount depends on the nature of the default and can vary based on whether it is a minor or major discrepancy.
PUNISHMENT / IMPLICATIONS (if applicable):
- In addition to the penalty, the taxpayer may also face interest on the unpaid tax and possible prosecution for willful concealment of income.
SOURCE:
- Income Tax Act, 1961
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