Section 298
Section 298: interest and penalty for a missed block-assessment return
Section 298 addresses what happens when a person doesn't comply with a notice requiring them to file a return of undisclosed income for the block period, following a search or requisition.
What triggers this section
Where the return of undisclosed income required under a notice issued under Section 294(1)(a) is not furnished within the period specified in that notice - or is not furnished at all - the interest and penalty consequences that would otherwise apply under the Act for a failure to furnish a return, and for concealment or under-reporting of income, apply in relation to the undisclosed income of the block period, as per the provisions of this Part.
Why this matters
This section ties the block-assessment regime back into the Act's general interest (Section 423 and related) and penalty (Chapter XXI) machinery - a person who ignores or is late responding to a block-assessment notice doesn't escape those consequences just because the notice was for a special block-period return rather than an ordinary annual return.
Frequently asked questions
What happens if I don't file my block-period return in time?
The interest and penalty consequences that otherwise apply under the Act for a failure to furnish a return, or for concealment/under-reporting of income, apply to your undisclosed income for the block period.
Which notice does Section 298 relate to?
The notice issued under Section 294(1)(a), which requires a person to furnish a return of undisclosed income for the block period following a search or requisition.
Related sections
Want this applied to your actual filing, not just explained?
Get help responding to a block assessment noticeLast updated 9 September 2026