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Misreporting of income

ABHISHEK JAISWAL (34 Points)

26 November 2019

please make clear the difference between under reporting and mis reporting

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Kapadia Pravin (17259 Points)
Replied 26 November 2019

Under reporting is the deliberate act of reporting less income usually for income tax purposes. Under reporting income in order to avoid taxes is an illegal practice
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Mis-reporting of income as per Section 270A of Income Tax Act generally occurs in the circumstances stated below:

Mis-representation or suppression of facts;

Non-recording of investment in the books of accounts;

Claim of expenditure not substantiated by evidence

Recording of false entry in books of accounts

Failure to record any receipt in books of accounts