The Bill also proposes to raise penalty under I-T Act for

The Bill also proposes to raise penalty under I-T Act for

ZCZC
PRI COM ECO GEN NAT
.NEWDEL DEL39
TAX 2 LAST
The Bill also proposes to raise penalty under I-T Act for
search and seizure cases by 3-fold to 30 per cent, a move aimed at deterring black money holders, from 10 or 20 per cent currently.
Once the amendments are approved by Parliament, there would be a penalty of 30 per cent of unaccounted income, if admitted and taxes are paid. This would take the total incidence of tax and penalty to 60 per cent.
While proposing to amend Section 271AAB, the government has decided to retain the provision of levying penalty of 60 per cent of income in “any other cases”. That would raise the incidence of tax and penalty to 90 per cent.
During 2015-16, the I-T Department conducted 445 searches which discovered undisclosed income of Rs 11,066 crore. Total assets seized were Rs 712.68 crore.
Also 545 searches conducted in 2014-15 have led to admission of undisclosed income worth Rs 10,288 crore. Total assets seized amounted to Rs 761.70 crore.
Besides, 569 searches in 2013-14 saw admission of undisclosed income of Rs 10,791.63 crore and asset seizure of Rs 807.84 crore.
This took the total undisclosed income which was admitted during searches to Rs 32,146 crore.
Search and seizure operations are conducted by the tax department when the Assessing Officer believes that the assessee is unlikely to produce books of accounts or likely to suppress books of account and other documents which may be useful and relevant to an income tax proceedings. PTI JD SA
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