Penalties Section 271AAB — Penalty on Undisclosed Income Found in Search
Section 271AAB — Penalty on Undisclosed Income Found in Search
Income Tax Act 1961 — 271AAB
30% (with admission and specified conditions) to 60% (in other cases) of undisclosed income found in a search under s.132 initiated on or after 15 December 2016.
The Penalty
30% (admitted) / 60% (otherwise)
- Cap
- 60% of undisclosed income
- Calculation base
- Undisclosed income of the specified previous year
- Period
- One-time per search assessment.
When does this apply?
Search initiated u/s 132 on or after 15 Dec 2016 that discovers undisclosed income.
Calculate this amount
This estimate applies only the rate and caps published in the authored rule for this page.
₹0
Worked examples
| Scenario | Calculation | Result |
|---|---|---|
| Undisclosed income ₹1 crore, admitted in s.132(4) statement and taxes paid | 30% × ₹1 cr | ₹30,00,000 |
| Undisclosed income ₹1 crore, not admitted / other cases | 60% × ₹1 cr | ₹60,00,000 |
How it is levied
Assessment made u/s 153A / 143(3) following search; penalty proceedings initiated separately. Reasonable-cause defence u/s 273B is NOT available for s.271AAB.
⚠ VERIFY
For searches before 15 Dec 2016 the rates and structure differ; confirm the search-initiation date before choosing the rate schedule.