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How concealment penalty is calculated

770 views 3 replies

Ibrahim

Assistant Manager

83 Points Joined May 2016

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)

CA. Rohan Somani

Chartered Accountant

94 Points Joined May 2013

Generally Penalty imposed on tax amount.

rama krishnan

12244 Points Joined May 2017

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

83 Points Joined May 2016

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.