If a taxpayer voluntarily files a revised return and deposits the short-paid tax along with the default surcharge, when will they be completely exempt from paying any penalty?

Correct answer: B) B) If they revise the return voluntarily before the receipt of a notice for audit.

Explanation

If a taxpayer files a revised return voluntarily along with the deposit of the tax short paid and default surcharge before receipt of a notice for audit or amendment of assessment, no penalty shall be recovered from him. (If revised during audit, a 25% penalty applies).