Penalty in Case of Search
Nature of Default
Penalty may be imposed if a search is initiated under Section 132 between 15-12-2016 and 01-09-2024 and undisclosed income is found. Undisclosed income includes:
- Money, bullion, jewellery, or other valuable articles not recorded in books before the search date.
- Entries in books or documents found during the search that were not disclosed before the search date.
- Bogus expenditures recorded in books that are found to be false during the search.
Quantum of Penalty
- The Assessing Officer or the Commissioner (Appeals)may impose a penalty at the rate of 30% or 60% of the undisclosed income.
- Lower rate (30%) applies if the assessee fulfils the following conditions:
Admits undisclosed income under Section 132(4).
Substantiates the source of such income.
Pays tax and interest due.
Files return declaring such income by the specified due date.
Due Dates for Filing Return to avail Lower Rate of Penalty
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Specified Previous Year |
Due Date for Filing Return |
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Previous year ending before search date, the return due date has not expired, and the return has not been filed yet |
Due date as per Section 139(1) |
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Previous year ending before search date, the return due date has expired, and the return has not been filed yet |
Expiry date of period in notice under Section 148(3)/153A
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Previous year in which the search is conducted |
Date on which the period for filing the return as per the notice under Section 148 or 153A expires |