Section 20B(2) in Karnataka Tax on Entry of Goods Act, 1979
(2)A dealer who for any prescribed tax period furnishes particulars for preparation of a return or furnishes a return which understates his liability to tax or overstates his entitlement to a tax deduction by more than five per cent of his actual liability to tax, of his actual tax deduction, as the case may be shall after being given the opportunity of showing cause in writing against the imposition of a penalty, be liable to a penalty equal to ten per cent of the amount of such tax understated or overstated.
