New Tax Rates on undisclosed income in India -Taxation Bill 2016

By | November 30, 2016
(Last Updated On: November 30, 2016)

NEW TAX RATES ON UNDISCLOSED INCOME

Lok Sabha Passed Bill to Tax Black Money / Undisclosed Income on 29.11.2016 . This Bill is called The Taxation Laws (Second Amendment) Bill, 2016 .

 

Overview of this bill:

Tax Rates on Undisclosed Income As per Taxation Laws (Second Amendment) Bill 2016 passed by Lok Sabha on 29.11.2016

Income DeclaredExplanation of Tax Rate and DeductionsEffective Tax Rate
Income declared under Pradhan Mantri Garib Kalyan Yojana, 2016 

Flat rate of tax @30% of Income u/s 199D(1)  +        Penalty              @10% of income declared u/s 199E

+ surcharge to be called Pradhan Mantri Garib Kalyan Cess @33 % of tax u/s 199D(2)

Conditions :-

1.declaration in respect of any income, in the form of cash or deposit in an account maintained by the person with a specified entity. Read Pradhan Mantri Garib Kalyan Yojana, 2016

2.No expense, deductions, set-off is allowed

3.  25% of income declared to be deposited in interest free Deposit Scheme for 4 years

49.90%
Unexplained Income is disclosed voluntarily in Income Tax ReturnFlat rate of tax @60% of Income u/s Section 115BBE + surcharge @ 15% of Income  ( i.e @25% of tax ) u/s Section 115BBE + 3% Education Cess on Tax and Surcharge u/s Section 115BBE

(No expense, deductions, set-off is allowed)

77.25%
Unexplained Income is disclosed voluntarily in ITR but advance tax is not paid on or before 31.03.2017Flat rate of tax @60% of Income  u/s Section 115BBE + surcharge @ 15% of Income  ( i.e @25% of tax ) u/s Section 115BBE +10% Penalty on Tax u/s Provio to Section 271AAC  + 3% Education Cess on Tax and Surcharge u/s u/s Section 115BBE

(No expense, deductions, set-off is allowed)

83.25%
Income is disclosed in ITR but treated as unexplained by Tax OfficerFlat rate of tax @60% of Income  u/s Section 115BBE + surcharge @ 15% of Income  ( i.e @25% of tax ) u/s Section 115BBE +10% Penalty on Tax u/s Section 271AAC + 3% Education Cess on Tax and Surcharge u/s u/s Section 115BBE

(No expense, deductions, set-off is allowed)

83.25%
Income admitted after search and declared in ITR 

Flat rate of tax @60% of Income  u/s Section 115BBE + surcharge @ 15% of Income  ( i.e @25% of tax ) u/s Section 115BBE + Penalty u/s 271AAB @ 30% of income + 3% Education Cess on Tax and Surcharge u/s Section 115BBE

(No expense, deductions, set-off is allowed)

 

107.25%
Income not admitted after search and/or not declared in ITRFlat rate of tax @60% of Income u/s Section 115BBE + surcharge @ 15% of Income  ( i.e @25% of tax ) u/s Section 115BBE + Penalty u/s  (271AAB)  60% of income + + 3% Education Cess on Tax and Surcharge u/s Section 115BBE

(No expense, deductions, set-off is allowed)

 

137.25%

* Penalty is computed on tax amount excluding cess and surcharge

Tax Table

1 Income declared under Pradhan Mantri Garib Kalyan Yojana, 2016

Income RangeIncome-taxGarib Kalyan CessPenaltyDeposit for 4 yearsTotal DeductionsTotal Tax & Penalty
Under Sec. 199D(1)Under Sec. 199D(2)Under Sec. 199EUnder Sec. 199F(at 49.9%)
200,00060,00019,80020,00050,000149,80099,800
500,000150,00049,50050,000125,000374,500249,500
1,000,000300,00099,000100,000250,000749,000499,000
2,500,000750,000247,500250,000625,0001,872,5001,247,500
5,000,0001,500,000495,000500,0001,250,0003,745,0002,495,000
7,500,0002,250,000742,500750,0001,875,0005,617,5003,742,500
10,000,0003,000,000990,0001,000,0002,500,0007,490,0004,990,000
20,000,0006,000,0001,980,0002,000,0005,000,00014,980,0009,980,000
50,000,00015,000,0004,950,0005,000,00012,500,00037,450,00024,950,000

A. Income-tax30%
B. Garib Kalyan Cess33% of Tax (9.9%)
C. Penalty10% of undisclosed income
D. Deposit for 4 years25% of undisclosed income

2 Unexplained Income is disclosed voluntarily in ITR and advance tax is paid on or before March 31, 2017

Income RangeIncome-taxSurchargeEducation CessS&H Education CessTotal Tax & Penalty
Under Sec. 115BBE(at 77.25%)
200,000120,00030,0003,0001,500154,500
500,000300,00075,0007,5003,750386,250
1,000,000600,000150,00015,0007,500772,500
2,500,0001,500,000375,00037,50018,7501,931,250
5,000,0003,000,000750,00075,00037,5003,862,500
7,500,0004,500,0001,125,000112,50056,2505,793,750
10,000,0006,000,0001,500,000150,00075,0007,725,000
20,000,00012,000,0003,000,000300,000150,00015,450,000
50,000,00030,000,0007,500,000750,000375,00038,625,000

A. Income-tax60%
B. Surcharge25% of Income-tax (15%)
C. Education Ces2% of Income-tax & Surcharge
D. S&H Education Cess1% of Income-tax & Surcharge

3 Unexplained Income is disclosed voluntarily in ITR but advance tax is not paid on or before March 31, 2017

Income RangeIncome-taxSurchargeEducation CessS&H Education CessPenaltyTotal Tax & Penalty
Under Sec. 115BBEUnder Sec. 271AAC(at 83.25%)
200,000120,00030,0003,0001,50012,000166,500
500,000300,00075,0007,5003,75030,000416,250
1,000,000600,000150,00015,0007,50060,000832,500
2,500,0001,500,000375,00037,50018,750150,0002,081,250
5,000,0003,000,000750,00075,00037,500300,0004,162,500
7,500,0004,500,0001,125,000112,50056,250450,0006,243,750
10,000,0006,000,0001,500,000150,00075,000600,0008,325,000
20,000,00012,000,0003,000,000300,000150,0001,200,00016,650,000
50,000,00030,000,0007,500,000750,000375,0003,000,00041,625,000

A. Income-tax60%
B. Surcharge25% of Income-tax (15%)
C. Education Ces2% of Income-tax & Surcharge
D. S&H Education Cess1% of Income-tax & Surcharge
E. Penalty10% of Income-tax (6%)

4 Income is disclosed in ITR but treated as unexplained by Tax Officer

Income RangeIncome-taxSurchargeEducation CessS&H Education CessPenaltyTotal Tax & Penalty
Under Sec. 115BBEUnder Sec. 271AAC(at 83.25%)
200,000120,00030,0003,0001,50012,000166,500
500,000300,00075,0007,5003,75030,000416,250
1,000,000600,000150,00015,0007,50060,000832,500
2,500,0001,500,000375,00037,50018,750150,0002,081,250
5,000,0003,000,000750,00075,00037,500300,0004,162,500
7,500,0004,500,0001,125,000112,50056,250450,0006,243,750
10,000,0006,000,0001,500,000150,00075,000600,0008,325,000
20,000,00012,000,0003,000,000300,000150,0001,200,00016,650,000
50,000,00030,000,0007,500,000750,000375,0003,000,00041,625,000

A. Income-tax60%
B. Surcharge25% of Income-tax (15%)
C. Education Ces2% of Income-tax & Surcharge
D. S&H Education Cess1% of Income-tax & Surcharge
E. Penalty10% of Income-tax (6%)

5 Income is admitted after search and declared in ITR

Income RangeIncome-taxSurchargeEducation CessS&H Education CessPenaltyTotal Tax & Penalty
Under Sec. 115BBEUnder Sec. 271AAB(at 107.25%)
200,000120,00030,0003,0001,50060,000214,500
500,000300,00075,0007,5003,750150,000536,250
1,000,000600,000150,00015,0007,500300,0001,072,500
2,500,0001,500,000375,00037,50018,750750,0002,681,250
5,000,0003,000,000750,00075,00037,5001,500,0005,362,500
7,500,0004,500,0001,125,000112,50056,2502,250,0008,043,750
10,000,0006,000,0001,500,000150,00075,0003,000,00010,725,000
20,000,00012,000,0003,000,000300,000150,0006,000,00021,450,000
50,000,00030,000,0007,500,000750,000375,00015,000,00053,625,000

A. Income-tax60%
B. Surcharge25% of Income-tax (15%)
C. Education Ces2% of Income-tax & Surcharge
D. S&H Education Cess1% of Income-tax & Surcharge
E. Penalty30% of Undisclosed Income

6 Income not admitted after search and/or not declared in ITR

Income RangeIncome-taxSurchargeEducation CessS&H Education CessPenaltyTotal Tax & Penalty
Under Sec. 115BBEUnder Sec. 271AAB(at 137.25%)
200,000120,00030,0003,0001,500120,000274,500
500,000300,00075,0007,5003,750300,000686,250
1,000,000600,000150,00015,0007,500600,0001,372,500
2,500,0001,500,000375,00037,50018,7501,500,0003,431,250
5,000,0003,000,000750,00075,00037,5003,000,0006,862,500
7,500,0004,500,0001,125,000112,50056,2504,500,00010,293,750
10,000,0006,000,0001,500,000150,00075,0006,000,00013,725,000
20,000,00012,000,0003,000,000300,000150,00012,000,00027,450,000
50,000,00030,000,0007,500,000750,000375,00030,000,00068,625,000

A. Income-tax60%
B. Surcharge25% of Income-tax (15%)
C. Education Ces2% of Income-tax & Surcharge
D. S&H Education Cess1% of Income-tax & Surcharge
E. Penalty60% of Undisclosed Income

Related Post 

Key Points -Pradhan Mantri Garib Kalyan Yojana 2016 -Tax on Black money

Taxation and Investment Regime for Pradhan Mantri Garib Kalyan Yojana 2016
The Taxation Laws (Second Amendment) Bill, 2016
 introduced in Lok Sabha 28.11.2016

New Taxation Bill to tax undisclosed income introduced in Lok Sabha by India -PMGKY -Govt Press Release 28.11.2016

Leave a Reply

Your email address will not be published. Required fields are marked *