Section 470
Section 470: penalty not to be imposed in certain cases
Section 470 provides a general defence against a specified list of penalties in this Chapter: if the person or assessee can prove there was reasonable cause for the failure in question, no penalty is imposed under those provisions.
What Section 470 says
"Irrespective of anything contained in the provisions of section 441 or 442 or 446 or 448 or 449 or 450 or 451 or 452 or 453 or 454 or 455 or 456 or 457 or 458 or 459 or 460 or 461 or 462 or 463 or 465(1)(c) or 465(1)(d) or 465(2) or 466 or 467 or 468, no penalty shall be imposed on a person or assessee for any failure referred to in the said provisions, if he proves that there was reasonable cause for the said failure."
The text notes that the reference to "or 447" was omitted by the Finance Act, 2026, with effect from 1 April 2026, so section 447 is no longer among the provisions covered by this reasonable-cause defence.
How the defence works
Section 470 does not exempt anyone from the listed penalty provisions outright - it gives the person or assessee the opportunity to avoid the penalty by proving there was a reasonable cause for the specific failure that triggered it.
Frequently asked questions
Does Section 470 apply to every penalty in the Act?
No - it applies only to the specific list of sections named in the provision, including sections 441-463, and specified parts of section 465, plus sections 466 and 468.
What must a person show to avoid the penalty under Section 470?
That there was reasonable cause for the failure that would otherwise attract the penalty under one of the listed provisions.
Related sections
Want this applied to your actual filing, not just explained?
Talk to our tax team about a penalty noticeLast updated 9 September 2026