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How concealment penalty is calculated

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Ibrahim

Assistant Manager

52 Points Posted on 17 January 2020

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.

CA. Rohan Somani

Chartered Accountant

70 Points Posted on 17 January 2020

Generally Penalty imposed on tax amount.

rama krishnan

5751 Points Posted on 18 January 2020

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

Ibrahim

Assistant Manager

52 Points Posted on 19 January 2020

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.