A 57-year-old non-resident Indian (NRI) woman declared a total income of just Rs 43,796 while filing her ITR for the assessment year 2020-21. However, the tax officer found out that the lady had, in fact, received a much higher interest income of Rs 14,46, 321 and imposed a penalty of 200% on it.
The tax officer held that the lady had received the interest income, which she did not disclose in her income tax return. Treating this as a case of misreporting, the tax officer imposed a 200% penalty of the tax payable on the under-reported income amounting to Rs 4.85 lakh.
