Section 469

Section 469: power to reduce or waive penalty

Section 469 gives senior tax officials - the Principal Commissioner or Commissioner - discretionary power to reduce or fully waive a penalty imposed under Section 439 (under-reporting/misreporting of income), where they're satisfied the taxpayer meets certain conditions.

What the section allows

Irrespective of anything else in the Act, the Principal Commissioner or Commissioner may, on their own motion or on an application, reduce or waive a penalty imposed or imposable under Section 439, at their discretion, if satisfied that the person concerned meets prescribed conditions.

The general shape of the conditions

The conditions typically centre on the taxpayer having, before the Assessing Officer detected the concealment or under-reporting, voluntarily and in good faith disclosed the relevant particulars and cooperated in the related proceedings - similar in spirit to the waiver-and-immunity application process under Section 440, though this section is the standalone discretionary power the Principal Commissioner/Commissioner holds, whether or not a formal application under Section 440 has been made.

Frequently asked questions

Who has the power to waive a penalty under Section 469?

The Principal Commissioner or Commissioner, acting on their own motion or on an application, and only at their discretion.

Which penalty can be reduced or waived under this section?

The penalty for under-reporting and misreporting of income imposed or imposable under Section 439.

How is this different from Section 440?

Section 440 is the process for an assessee to formally apply for waiver and prosecution immunity together; Section 469 is the underlying discretionary power the Principal Commissioner/Commissioner holds to reduce or waive the penalty itself, which they can also exercise on their own motion.