# The Finance Act, 2026, Section 99: Amendment of section 440

- Act: The Finance Act, 2026 (Act 4 of 2026)
- Ministry: Ministry of Finance
- Source URL: https://indiacode.ecourtsindia.com/finance-act-2026/section/99/

## Text

Amendment of section 440. 99. In section 440 of the Income-tax Act,— (a) | for the marginal heading, the following marginal heading shall be substituted, namely:— "Waiver of penalty and immunity from prosecution."; (b) | for sub-sections (1) to (4), the following sub-sections shall be substituted, namely:— "(1) An assessee may make an application to the Assessing Officer to grant waiver of penalty levied under section 439 and immunity from initiation of proceedings under section 478 or 479 on fulfilment of the following conditions:— (a) | the tax and interest payable as per the order of assessment under section 270(10) or reassessment under section 279, has been paid within the period specified in the notice of demand; (b) | where penalty has been levied under the circumstances referred to in section 439(11)(a) to (f), additional income-tax amounting to 100% of the amount of tax payable on under-reported income has been paid within the period specified in the notice of demand, in lieu of such penalty; (c) | where penalty has been levied under the circumstances referred to in section 439(11)(g), additional income-tax amounting to 120% of the amount of tax payable on under-reported income has been paid within the period specified in the notice of demand, in lieu of such penalty; and (d) | no appeal has been filed against the order of assessment or reassessment and levy of penalty referred to in clauses (a), (b) and (c). (2) An application referred in sub-section (1) shall be made within one month from the end of the month in which the order referred to in the said sub-section is received by the assessee, in such form and verified in such manner, as may be prescribed. (3) The Assessing Officer shall, on fulfilment of the conditions as specified in sub-section (1), and after the expiry of the period of filing appeal as specified in section 358(3)(a), grant waiver of penalty under section 439 and immunity from initiation of proceedings under section 478 or 479. (4) No waiver or immunity under sub-section (3) shall be granted if any proceeding has been initiated under Chapter XXII.".

---
Published by eCourtsIndia together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957.