Section 440
Section 440: applying for waiver of penalty and immunity from prosecution
Section 440 gives an assessee facing a penalty for under-reporting or misreporting income (under Section 439) a way to apply for that penalty to be waived, and for immunity from the related prosecution provisions, in exchange for voluntary disclosure and cooperation.
What can be applied for
An assessee may apply to the Assessing Officer for a waiver of the penalty levied under Section 439, and for immunity from initiation of proceedings under Section 478 or 479, on fulfilment of prescribed conditions.
The general shape of the conditions
The prescribed conditions are generally built around the assessee having disclosed the relevant particulars voluntarily and in good faith, before the Assessing Officer detected the concealment or under-reporting, and having cooperated in the assessment or reassessment proceedings, including paying the tax and interest determined to be due. The exact conditions and procedure are as prescribed.
Frequently asked questions
What can I get immunity from under Section 440?
The application can seek waiver of the Section 439 penalty (for under-reporting/misreporting income) and immunity from prosecution proceedings under Section 478 or 479.
Is this waiver automatic once I disclose an error?
No - it must be applied for, and is granted only on fulfilment of prescribed conditions relating to voluntary disclosure, timing (generally before detection), and cooperation with the tax authorities.
Related sections
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Get help applying for penalty waiver and immunityLast updated 9 September 2026