recent provisions for taxation & penalty on unexplained credit, investment, cash and other...
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Recent Provisions for Taxation & Penalty onUnexplained Credit, Investment, Cash and OtherAssets
S.No. ParticularsDeclared under Pradhan Mantri
Garib Kalyan YojanaVoluntary Declared under
Return Filing
1 ApplicabilityUndisclosed Income in the form of Cash or deposits in an account maintained by the person with following specified entity
All Unexplained Cash, Credit, Investment, Cash and Other Assets
2 Tax @ 30% of Undisclosed Income60% of Unexplained cash, credit, Investment, Cash and Other Assets u/s 115 BBE
3 Surcharge @ 33% of Tax i.e. 9.9% 25% of Tax i.e. 15%
4 Cess @ N.A. 3% OF Tax & Surcharge i.e. 2.25%
5 Penalty@ 10% of Undisclosed Income No Penalty u/s 271AAC
6Total Tax+Surcharge+Cess+Penalty
49.90% 77.25%
7 Deposit 25% of declared income to be deposited in Interest Free Deposit Scheme for 4 years
N.A.
8 Prosecution Proceedings No Prosecution ProceedingsNo Prosecution Proceedings and no penalty will be levied for under reporting and mis-reporting of income
9 Penalty u/s 271AAB No Penalty levied No Penalty levied
10
Example
Undisclosed Income is Rs. 10 lakh,So, Tax will be Rs. 3 lakh and Surcharge of Rs. 99000 and Penalty will be Rs. 100000Total is Rs. 499000 which is 49.9% of undisclosed income.Rs 2.5 lakh will be locked in for 4 years without accruing any interest.
Undisclosed Income is Rs. 10 lakh,So, Tax will be Rs. 6 lakh and Surcharge of Rs. 1.5 lakh, Cess of Rs.22500 and Penalty will be NIL.Total is Rs. 772500 which is 77.25% of undisclosed income.
11 Total Liability 49.90% 77.25%
S.No. ParticularsNot Declared by Assessee in Return of Income But
Determined by AO
1 ApplicabilityUndisclosed Income in the form of Cash or deposits in an account maintained by the person with following specified entity
2 Tax @ 60% of Undisclosed Income u/s 115 BBE
3 Surcharge @ 25% of Tax i.e. 15%
4 Cess @ 3% OF Tax & Surcharge i.e. 2.25%
5 Penalty@ 10% on tax i.e 6% of Undisclosed Income u/s 271AAC
6 Total Tax+Surcharge+Cess+Penalty 83.25%
7 Deposit N.A.
8 Prosecution Proceedings No Prosecution Proceedings
9 Penalty u/s 271AAB No Penalty levied
10
Example
Undisclosed Income is Rs. 10 lakh,So, Tax will be Rs. 6 lakh and Surcharge of Rs. 1.5 lakh, Cess of Rs.22500 and Penalty will be Rs 60000.Total is Rs. 832500 which is 83.25% of undisclosed income.
11 Total Liability 83.25%
S.No. Particulars Not declared but Search & Seizure held
1 Applicability All Unexplained Cash, Credit, Investment, Cash and Other Assets
2 Tax @ 60% of Undisclosed Income u/s 115 BBE
3 Surcharge @ 25% of Tax i.e. 15%
4 Cess @ 3% OF Tax & Surcharge i.e. 2.25%
5 Penalty@ No Penalty u/s 271AAC
6Total Tax+Surcharge+Cess+Penalty
77.25%
7 Deposit N.A.
8 Prosecution Proceedings Prosecution Proceedings will be there
9 Penalty u/s 271AAB Penalty LEVIED
Found during a Raid
Person Admits Tax Evasion At the time of Raid
Does Not Admits at the time of Raid
Penalty @ 30% of Income will be leviedPenalty @ 60% of Income will be levied
10
Example
Undisclosed Income is Rs. 10 lakh,So, Tax will be Rs. 6 lakh and Surcharge of Rs. 1.5 lakh, Cess of Rs.22500 and Penalty u/s 271AAB of Rs. 3 lakh.Total is Rs.1072500 which is 107.25% of undisclosed income.
Undisclosed Income is Rs. 10 lakh,So, Tax will be Rs. 6 lakh and Surcharge of Rs. 1.5 lakh, Cess of Rs.22500 and Penalty u/s 271AAB of Rs. 6 lakh.Total is Rs.1372500 which is 137.25% of undisclosed income.
11 Total Liability 107.25% 137.25%
