How concealment penalty is calculated

Hi,

I want to know how to calculate concealment penalty in below example , I have heard that income tax can make penalty from 100 - 300 percent on the concealed income (my question is related to earlier AY 13-14)

Suppose Assessing officer has assessed 2 lakh rupees of concealed income and if tax payable on this 2 lakh rupees is 40,000 rupees how much penalty amount will come if 100 percent is levied.

a - 2 lakh rupees

b - 40000 rupees

Thanks

Replies (3)
Quick Summary
This discussion clarifies how income tax concealment penalties are calculated. Penalties are typically levied as a percentage of the tax evaded, ranging from 100% to 300%. In the provided example, with a tax payable of £40,000 on concealed income, a 100% penalty would amount to £40,000. The conversation also touches upon potential interest charges on both the tax due and the penalty for concealed income from earlier assessment years.

Generally Penalty imposed on tax amount.

The minimum and maximum penalty under section 271(1)(c) is 100% and 300% of tax sought to be evaded. in your example case it's 40000, 100% tax sought to be evaded

Hi, 

Also advise whether interest would also be charged since the concealed income is from AY 14-15 and making payment now in AY 19-20 and whether interest would be calculated on tax due and penalty both.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 01 October 2026
Articled Assistant

KPSN & Associates LLP

Chennai

CA Inter

View Details
Company
ARTICLESHIP 07 September 2026
CA Articles

Kothari Jain Patil & Chartered Accountants

Pune

CA Inter

View Details
Company
19 September 2026
CA/Semi-CA/BCom

Pravin Sarvaiya

Mumbai

CA Inter

View Details
Company
15 September 2026
Client-site CA associate

Aditya Muley and Co

Mumbai

CA

View Details
Company
09 September 2026
Semi Qualified CA / CA Inter - 2 Groups Cleared

Getmyca Consultant Pvt Ltd

New Delhi

CA Inter

View Details
Company
19 September 2026
Finance Manager

Mugdha Art Studio

Hyderabad

CA

View Details
Company
Featured 12 September 2026
Assistant Manager - Finance & Compliance

Naveen Fintech Pvt Ltd

Kolkata

CA Inter

View Details
Company
ARTICLESHIP 04 September 2026
Accounts Executive

Hema Yashwanth & Associates

Chennai

B.Com

View Details