# The Finance Act, 1964, Section 40: Amendment of section 271

- Act: The Finance Act, 1964 (Act 5 of 1964)
- Ministry: Ministry of Finance
- Source URL: https://indiacode.ecourtsindia.com/finance-act-1964/section/40/

## Text

Amendment of section 271 40. In section 271 of the Income-tax Act, in sub-section (1),- (i) in clause (c), the word ‘‘deliberately" shall be omitted; (ii) the following Explanation shall be inserted at the end, namely: — "Explanation.—Where the total income returned by any person is less than eighty per cent, of the total income (hereinafter in this Explanation referred to as the correct income) as assessed under section 143 or section 144 or section 147 (reduced by the expenditure incurred bona fide by him for the purpose of making or earning any income included in the total income but which has been disallowed as a deduction), such person shall, unless he proves that the failure to return the correct income did not arise from any fraud or any gross or wilful neglect on his part, be deemed to have concealed the particulars of his income or furnished inaccurate particulars of such income for the purposes of clause (c) of this sub-section.". [Finance Act, 1964] © Copyright. Taxmann Publications Pvt. Ltd.

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