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 Declared | Explanation of Tax Rate and Deductions | Effective 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 Return | Flat 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 31.03.2017 | Flat 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 Officer | Flat 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 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) 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 Range | Income-tax | Garib Kalyan Cess | Penalty | Deposit for 4 years | Total Deductions | Total Tax & Penalty |
| Under Sec. 199D(1) | Under Sec. 199D(2) | Under Sec. 199E | Under Sec. 199F | (at 49.9%) | ||
| 200,000 | 60,000 | 19,800 | 20,000 | 50,000 | 149,800 | 99,800 |
| 500,000 | 150,000 | 49,500 | 50,000 | 125,000 | 374,500 | 249,500 |
| 1,000,000 | 300,000 | 99,000 | 100,000 | 250,000 | 749,000 | 499,000 |
| 2,500,000 | 750,000 | 247,500 | 250,000 | 625,000 | 1,872,500 | 1,247,500 |
| 5,000,000 | 1,500,000 | 495,000 | 500,000 | 1,250,000 | 3,745,000 | 2,495,000 |
| 7,500,000 | 2,250,000 | 742,500 | 750,000 | 1,875,000 | 5,617,500 | 3,742,500 |
| 10,000,000 | 3,000,000 | 990,000 | 1,000,000 | 2,500,000 | 7,490,000 | 4,990,000 |
| 20,000,000 | 6,000,000 | 1,980,000 | 2,000,000 | 5,000,000 | 14,980,000 | 9,980,000 |
| 50,000,000 | 15,000,000 | 4,950,000 | 5,000,000 | 12,500,000 | 37,450,000 | 24,950,000 |
| A. Income-tax | 30% |
| B. Garib Kalyan Cess | 33% of Tax (9.9%) |
| C. Penalty | 10% of undisclosed income |
| D. Deposit for 4 years | 25% of undisclosed income |
2 Unexplained Income is disclosed voluntarily in ITR and advance tax is paid on or before March 31, 2017
| Income Range | Income-tax | Surcharge | Education Cess | S&H Education Cess | Total Tax & Penalty |
| Under Sec. 115BBE | (at 77.25%) | ||||
| 200,000 | 120,000 | 30,000 | 3,000 | 1,500 | 154,500 |
| 500,000 | 300,000 | 75,000 | 7,500 | 3,750 | 386,250 |
| 1,000,000 | 600,000 | 150,000 | 15,000 | 7,500 | 772,500 |
| 2,500,000 | 1,500,000 | 375,000 | 37,500 | 18,750 | 1,931,250 |
| 5,000,000 | 3,000,000 | 750,000 | 75,000 | 37,500 | 3,862,500 |
| 7,500,000 | 4,500,000 | 1,125,000 | 112,500 | 56,250 | 5,793,750 |
| 10,000,000 | 6,000,000 | 1,500,000 | 150,000 | 75,000 | 7,725,000 |
| 20,000,000 | 12,000,000 | 3,000,000 | 300,000 | 150,000 | 15,450,000 |
| 50,000,000 | 30,000,000 | 7,500,000 | 750,000 | 375,000 | 38,625,000 |
| A. Income-tax | 60% |
| B. Surcharge | 25% of Income-tax (15%) |
| C. Education Ces | 2% of Income-tax & Surcharge |
| D. S&H Education Cess | 1% 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 Range | Income-tax | Surcharge | Education Cess | S&H Education Cess | Penalty | Total Tax & Penalty |
| Under Sec. 115BBE | Under Sec. 271AAC | (at 83.25%) | ||||
| 200,000 | 120,000 | 30,000 | 3,000 | 1,500 | 12,000 | 166,500 |
| 500,000 | 300,000 | 75,000 | 7,500 | 3,750 | 30,000 | 416,250 |
| 1,000,000 | 600,000 | 150,000 | 15,000 | 7,500 | 60,000 | 832,500 |
| 2,500,000 | 1,500,000 | 375,000 | 37,500 | 18,750 | 150,000 | 2,081,250 |
| 5,000,000 | 3,000,000 | 750,000 | 75,000 | 37,500 | 300,000 | 4,162,500 |
| 7,500,000 | 4,500,000 | 1,125,000 | 112,500 | 56,250 | 450,000 | 6,243,750 |
| 10,000,000 | 6,000,000 | 1,500,000 | 150,000 | 75,000 | 600,000 | 8,325,000 |
| 20,000,000 | 12,000,000 | 3,000,000 | 300,000 | 150,000 | 1,200,000 | 16,650,000 |
| 50,000,000 | 30,000,000 | 7,500,000 | 750,000 | 375,000 | 3,000,000 | 41,625,000 |
| A. Income-tax | 60% |
| B. Surcharge | 25% of Income-tax (15%) |
| C. Education Ces | 2% of Income-tax & Surcharge |
| D. S&H Education Cess | 1% of Income-tax & Surcharge |
| E. Penalty | 10% of Income-tax (6%) |
4 Income is disclosed in ITR but treated as unexplained by Tax Officer
| Income Range | Income-tax | Surcharge | Education Cess | S&H Education Cess | Penalty | Total Tax & Penalty |
| Under Sec. 115BBE | Under Sec. 271AAC | (at 83.25%) | ||||
| 200,000 | 120,000 | 30,000 | 3,000 | 1,500 | 12,000 | 166,500 |
| 500,000 | 300,000 | 75,000 | 7,500 | 3,750 | 30,000 | 416,250 |
| 1,000,000 | 600,000 | 150,000 | 15,000 | 7,500 | 60,000 | 832,500 |
| 2,500,000 | 1,500,000 | 375,000 | 37,500 | 18,750 | 150,000 | 2,081,250 |
| 5,000,000 | 3,000,000 | 750,000 | 75,000 | 37,500 | 300,000 | 4,162,500 |
| 7,500,000 | 4,500,000 | 1,125,000 | 112,500 | 56,250 | 450,000 | 6,243,750 |
| 10,000,000 | 6,000,000 | 1,500,000 | 150,000 | 75,000 | 600,000 | 8,325,000 |
| 20,000,000 | 12,000,000 | 3,000,000 | 300,000 | 150,000 | 1,200,000 | 16,650,000 |
| 50,000,000 | 30,000,000 | 7,500,000 | 750,000 | 375,000 | 3,000,000 | 41,625,000 |
| A. Income-tax | 60% |
| B. Surcharge | 25% of Income-tax (15%) |
| C. Education Ces | 2% of Income-tax & Surcharge |
| D. S&H Education Cess | 1% of Income-tax & Surcharge |
| E. Penalty | 10% of Income-tax (6%) |
5 Income is admitted after search and declared in ITR
| Income Range | Income-tax | Surcharge | Education Cess | S&H Education Cess | Penalty | Total Tax & Penalty |
| Under Sec. 115BBE | Under Sec. 271AAB | (at 107.25%) | ||||
| 200,000 | 120,000 | 30,000 | 3,000 | 1,500 | 60,000 | 214,500 |
| 500,000 | 300,000 | 75,000 | 7,500 | 3,750 | 150,000 | 536,250 |
| 1,000,000 | 600,000 | 150,000 | 15,000 | 7,500 | 300,000 | 1,072,500 |
| 2,500,000 | 1,500,000 | 375,000 | 37,500 | 18,750 | 750,000 | 2,681,250 |
| 5,000,000 | 3,000,000 | 750,000 | 75,000 | 37,500 | 1,500,000 | 5,362,500 |
| 7,500,000 | 4,500,000 | 1,125,000 | 112,500 | 56,250 | 2,250,000 | 8,043,750 |
| 10,000,000 | 6,000,000 | 1,500,000 | 150,000 | 75,000 | 3,000,000 | 10,725,000 |
| 20,000,000 | 12,000,000 | 3,000,000 | 300,000 | 150,000 | 6,000,000 | 21,450,000 |
| 50,000,000 | 30,000,000 | 7,500,000 | 750,000 | 375,000 | 15,000,000 | 53,625,000 |
| A. Income-tax | 60% |
| B. Surcharge | 25% of Income-tax (15%) |
| C. Education Ces | 2% of Income-tax & Surcharge |
| D. S&H Education Cess | 1% of Income-tax & Surcharge |
| E. Penalty | 30% of Undisclosed Income |
6 Income not admitted after search and/or not declared in ITR
| Income Range | Income-tax | Surcharge | Education Cess | S&H Education Cess | Penalty | Total Tax & Penalty |
| Under Sec. 115BBE | Under Sec. 271AAB | (at 137.25%) | ||||
| 200,000 | 120,000 | 30,000 | 3,000 | 1,500 | 120,000 | 274,500 |
| 500,000 | 300,000 | 75,000 | 7,500 | 3,750 | 300,000 | 686,250 |
| 1,000,000 | 600,000 | 150,000 | 15,000 | 7,500 | 600,000 | 1,372,500 |
| 2,500,000 | 1,500,000 | 375,000 | 37,500 | 18,750 | 1,500,000 | 3,431,250 |
| 5,000,000 | 3,000,000 | 750,000 | 75,000 | 37,500 | 3,000,000 | 6,862,500 |
| 7,500,000 | 4,500,000 | 1,125,000 | 112,500 | 56,250 | 4,500,000 | 10,293,750 |
| 10,000,000 | 6,000,000 | 1,500,000 | 150,000 | 75,000 | 6,000,000 | 13,725,000 |
| 20,000,000 | 12,000,000 | 3,000,000 | 300,000 | 150,000 | 12,000,000 | 27,450,000 |
| 50,000,000 | 30,000,000 | 7,500,000 | 750,000 | 375,000 | 30,000,000 | 68,625,000 |
| A. Income-tax | 60% |
| B. Surcharge | 25% of Income-tax (15%) |
| C. Education Ces | 2% of Income-tax & Surcharge |
| D. S&H Education Cess | 1% of Income-tax & Surcharge |
| E. Penalty | 60% 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