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:
|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|
|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%|