Summary of penalty attracted in respect of undisclosed income found during the course of search :
| Section | Relevant previous year | Penalty |
| Explanation 5A to section 271(1) | P.Y. which has ended before the date of search, in respect of which the due date has expired, but the return has not been furnished.
For example, in respect of P.Y.2015-16, if the date of search is 5.12.2016, then the P.Y. has ended before that date (i.e., on 31.3.2016) and the due date of filing return (31.7.2016/30.9.2016/30.11.2016, as the case may be) has also expired, but the return has not been furnished. In such a case, penalty would be attracted under this section. |
100% to 300% of the tax sought to be evaded. |
| Explanation 5A to section 271(1) | P.Y. which has ended before the date of search, in respect of which return has been furnished, but income found during the search has not been disclosed in the return. In such a case also, penalty would be attracted under this section. | 100% to 300% of the tax sought to be evaded. |
| 271AAB (in respect of search initiated u/s 132 on or after 1.7.2012) | Levy of penalty on undisclosed income found during the course of a search, which has been initiated on or after 1st July, 2012, which relates to specified previous year, i.e.-
(1) the previous year which has ended before the date of search, but the due date of filing return of income for the same has not expired before the date of search and the return has not yet been furnished; For example, in respect of P.Y.2015-16, if the date of search is 1.6.2016, then the P.Y. has ended before the date of search, but the due date of filing the return has not expired. (2) the previous year in which search is conducted. |
(1) Penalty@10% would be attracted, if undisclosed income is admitted during the course of search in the statement furnished under section 132(4)
(2) If undisclosed income relating to the specified previous year is not admitted during the course of search in the statement furnished under section 132(4) but the same is disclosed in the return of income filed after the date of search and the tax along with the interest, if any, is paid before the specified date, then, the taxpayer will be liable for penalty@20% of undisclosed income. (3) In all other cases, penalty ranging from 30% to 90% of undisclosed income would be attracted. |