Income Tax Act, 2025
Section 2: Subs. by s. 4, ibid., for “Commissioner” (w.e.f. 12013).
2. Subs. by s. 4, ibid., for “Commissioner” (w.e.f. 12013).
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1[271AAB. Penalty where search has been initiated.—(1) The Assessing Officer may,
notwithstanding anything contained in any other provisions of this Act, direct that, in a case where search
has been initiated under section 132 on or after the 1st day of July, 2012 2[but before the date on which
the Taxation Laws (Second Amendment) Bill, 2016 receives the assent of the President], the assessee
shall pay by way of penalty, in addition to tax, if any, payable by him,—
(a) a sum computed at the rate of ten per cent of the undisclosed income of the specified previous
year, if such assessee—
(i) in the course of the search, in a statement under sub-section (4) of section 132, admits the
undisclosed income and specifies the manner in which such income has been derived;
(ii) substantiates the manner in which the undisclosed income was derived; and
(iii) on or before the specified date—
(A) pays the tax, together with interest, if any, in respect of the undisclosed income; and
(B) furnishes the return of income for the specified previous year declaring such
undisclosed income therein;
(b) a sum computed at the rate of twenty per cent of the undisclosed income of the specified
previous year, if such assessee—
(i) in the course of the search, in a statement under sub-section (4) of section 132, does not
admit the undisclosed income; and
(ii) on or before the specified date—
(A) declares such income in the return of income furnished for the specified previous
year; and
(B) pays the tax, together with interest, if any, in respect of the undisclosed income;
(c) a sum 3[computed at the rate of sixty per cent.] of the undisclosed income of the specified
previous year, if it is not covered by the provisions of clauses (a) and (b).
2[(1A) The Assessing Officer may, notwithstanding anything contained in any other provisions of this
Act, direct that, in a case where search has been initiated under section 132 on or after the date on which
the Taxation Laws (Second Amendment) Bill, 2016 receives the assent of the President, the assessee shall
pay by way of penalty, in addition to tax, if any, payable by him,—
(a) a sum computed at the rate of thirty per cent of the undisclosed income of the specified
previous year, if the assessee—
(i) in the course of the search, in a statement under sub-section (4) of section 132, admits the
undisclosed income and specifies the manner in which such income has been derived;
(ii) substantiates the manner in which the undisclosed income was derived; and
The Assessing Officer may,
notwithstanding anything contained in any other provisions of this Act, direct that, in a case where search
has been initiated under section 132 on or after the 1st day of July, 2012 2[but before the date on which
the Taxation Laws (Second Amendment) Bill, 2016 receives the assent of the President], the assessee
shall pay by way of penalty, in addition to tax, if any, payable by him,—
a sum computed at the rate of ten per cent of the undisclosed income of the specified previous
year, if such assessee—
in the course of the search, in a statement under sub-section
of section 132, admits the
undisclosed income and specifies the manner in which such income has been derived;
substantiates the manner in which the undisclosed income was derived; and
on or before the specified date—
pays the tax, together with interest, if any, in respect of the undisclosed income; and
furnishes the return of income for the specified previous year declaring such
undisclosed income therein;
a sum computed at the rate of twenty per cent of the undisclosed income of the specified
previous year, if such assessee—
in the course of the search, in a statement under sub-section
of section 132, does not
admit the undisclosed income; and
on or before the specified date—
declares such income in the return of income furnished for the specified previous
year; and
pays the tax, together with interest, if any, in respect of the undisclosed income;
a sum 3[computed at the rate of sixty per cent.] of the undisclosed income of the specified
previous year, if it is not covered by the provisions of clauses
and
The Assessing Officer may, notwithstanding anything contained in any other provisions of this
Act, direct that, in a case where search has been initiated under section 132 on or after the date on which
the Taxation Laws (Second Amendment) Bill, 2016 receives the assent of the President, the assessee shall
pay by way of penalty, in addition to tax, if any, payable by him,—
a sum computed at the rate of thirty per cent of the undisclosed income of the specified
previous year, if the assessee—
in the course of the search, in a statement under sub-section
of section 132, admits the
undisclosed income and specifies the manner in which such income has been derived;
substantiates the manner in which the undisclosed income was derived; and