PENALTIESCentral

Section 41 of The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 in hindi

The Assessing Officer may direct that in a case where tax has been computed under section 10 in respect of undisclosed foreign income and asset, the assessee shall pay by way of penalty, in addition to tax, if any, payable by him, a sum equal to three times the tax computed under that section.

Summary

The Assessing Officer can charge a penalty for hidden foreign income or assets once the tax is calculated.
This penalty is in addition to the actual tax that the person must pay.
The amount of this penalty is exactly three times the tax calculated on those hidden assets or income.
The law uses Section 10 of the Act to determine the base tax amount before multiplying it by three.

Practical examples

1Ramesh has a hidden apartment in Singapore and a tax officer calculates that he owes 20 lakh rupees in tax on it. Under this law, the officer orders Ramesh to pay a penalty of 60 lakh rupees on top of the original tax.

2Anitha earns interest from a secret bank account in Switzerland and her tax is assessed at 5 lakh rupees. Because she did not disclose this, she is hit with a penalty of 15 lakh rupees.

FAQ

1. How much is the penalty under Section 41 of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015?

According to Section 41 of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, the penalty is a sum equal to three times the tax computed on the undisclosed foreign income and asset.

2. Does paying the tax exempt me from the penalty under Section 41 of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015?

No, Section 41 of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, states the penalty is paid in addition to the tax already payable.

3. Which official has the power to direct this penalty under Section 41 of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015?

The Assessing Officer is the authority who may direct an assessee to pay this penalty under Section 41 of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015.

Test yourself

Q1.Under Section 41 of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, what is the specific multiplier used to calculate the penalty based on the tax amount?

Q2.Which section of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, provides the tax calculation that serves as the basis for the penalty in Section 41?

Q3.If an individual is assessed for tax under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, does Section 41 allow the penalty to replace the tax payment?

Q4.Under Section 41 of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, the penalty applies to which of the following?

40PreviousSection 40 Interest for default in furnishing return and payment or deferment of advance tax.42NextSection 42 Penalty for failure to furnish return in relation to foreign income and asset.

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