close
This ad will auto close in 10 seconds

Demonetisation: Tax and penalty you pay on misreported income


Demonetisation: Tax and penalty you pay on misreported income

Zee Media Bureau

New Delhi: Ever since the government announced demonetisation of Rs 5,00 and Rs 1,000 notes, many people are keen to know that how should they declare the cash they are holding without incurring tax liability.

The fact is that under the new Section 270(A) of the Income Tax Act, misreporting of income invites a penalty of 200% of the tax payable.

Under the Income Declaration Scheme that ended on September 30, anyone who wanted to declare hitherto undeclared wealth would have paid only 45% tax, that too with no questions asked on the source of income.Now, the tax liability can go up to more than 80 percent in some cases. Check out the column below to know the tax you one pays for the undeclared income under IT Act:

Tax Slab for undeclared income under Income Tax Act
Amount Deposited (Rs) Tax Payable (Rs) Penalty for Misreporting (Rs) Total Tax Paid (Rs) Effective Tax Rate (%)
Up to 2.5 Lakh Nil Nil Nil 0
5 Lakh 25,000 50,000 75,000 15%
10  Lakh 1.25 Lakh 2.5 Lakh 3.75 Lakh 37.5%
15 Lakh 2.75 Lakh 5.5 Lakh 8.25 Lakh 55%
20 Lakh 4.25 Lakh 8.5 Lakh 12.75 Lakh 64%
30 Lakh 7.25 Lakh 14.5 Lakh 21.75 Lakh 73%
50 Lakh 13.5 Lakh 27 Lakh 40.5 Lakh 81%
1 Crore 28.25 Lakh 56.50 Lakh 84.75 Lakh 85%

 

From Zee News

0 Comment - Join the Discussions