Amount of tax sought to be evaded for the purposes of penalty for concealment of income under clause (iii) of sub-section (1) of section 271

[Admin TMI]

Question - What are the amendments proposed in section 271 in Finance Bill 2015 ?

AI Summary

Proposed Amendment to Section 271: Penalties for Concealing Income to Include Sections 115JB and 115JC from April 2016 The discussion addresses proposed amendments to section 271 of the Income Tax Act in the Finance Bill 2015, concerning penalties for concealing income. Under current provisions, penalties are based on the 'amount of tax sought to be evaded,' calculated as the difference between assessed tax and tax on reduced income. Issues arise when income concealment occurs under sections 115JB or 115JC, which courts have ruled do not warrant penalties if tax is paid under these sections. The proposed amendment aims to include both general provisions and sections 115JB or 115JC in calculating evaded tax, effective from April 1, 2016, for assessment year 2016-17 onward.