Income Tax Act, 2025
Section 2: Ins. by Act 48 of 2016, s. 3 (w.e.f. 152016).
2. Ins. by Act 48 of 2016, s. 3 (w.e.f. 152016).
3. Subs. by Act 28 of 2016, s. 103, for “which shall not be less than thirty per cent. but which shall not exceed ninety per
cent.” (w.e.f. 12017).
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(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 sixty per cent of the undisclosed income of the specified
previous year, if it is not covered under the provisions of clause (a).]
(2) No penalty under the provisions of 1[section 270A or] clause (c) of sub-section (1) of section
271 shall be imposed upon the assessee in respect of the undisclosed income referred to in sub-section
(1) 2[or sub-section (1A)].
(3) The provisions of sections 274 and 275 shall, as far as may be, apply in relation to the penalty
referred to in this section.
Explanation.—For the purposes of this section,—
(a) “specified date” means the due date of furnishing of return of income under sub-section (1)
of section 139 or the date on which the period specified in the notice issued under section 153A for
furnishing of return of income expires, as the case may be;
(b) “specified previous year” means the previous year—
(i) which has ended before the date of search, but the date of furnishing the return of income
under sub-section (1) of section 139 for such year has not expired before the date of search and
the assessee has not furnished the return of income for the previous year before the date of search;
or
(ii) in which search was conducted;
(c) “undisclosed income” means—
(i) any income of the specified previous year represented, either wholly or partly, by any
money, bullion, jewellery or other valuable article or thing or any entry in the books of account or
other documents or transactions found in the course of a search under section 132, which has—
(A) not been recorded on or before the date of search in the books of account or other
documents maintained in the normal course relating to such previous year; or
(B) otherwise not been disclosed to the 3[Principal Chief Commissioner or Chief
Commissioner] or 4[Principal Commissioner or Commissioner] before the date of search; or
(ii) any income of the specified previous year represented, either wholly or partly, by any
entry in respect of an expense recorded in the books of account or other documents maintained in
the normal course relating to the specified previous year which is found to be false and would not
have been found to be so had the search not been conducted.]
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 sixty per cent of the undisclosed income of the specified
previous year, if it is not covered under the provisions of clause
No penalty under the provisions of 1[section 270A or] clause
of sub-section
of section
271 shall be imposed upon the assessee in respect of the undisclosed income referred to in sub-section
2[or sub-section
The provisions of sections 274 and 275 shall, as far as may be, apply in relation to the penalty
referred to in this section.
Explanation.—For the purposes of this section,—
“specified date” means the due date of furnishing of return of income under sub-section
of section 139 or the date on which the period specified in the notice issued under section 153A for
furnishing of return of income expires, as the case may be;
“specified previous year” means the previous year—
which has ended before the date of search, but the date of furnishing the return of income
under sub-section
of section 139 for such year has not expired before the date of search and
the assessee has not furnished the return of income for the previous year before the date of search;
or
in which search was conducted;
“undisclosed income” means—
any income of the specified previous year represented, either wholly or partly, by any
money, bullion, jewellery or other valuable article or thing or any entry in the books of account or
other documents or transactions found in the course of a search under section 132, which has—
not been recorded on or before the date of search in the books of account or other
documents maintained in the normal course relating to such previous year; or
otherwise not been disclosed to the 3[Principal Chief Commissioner or Chief
Commissioner] or 4[Principal Commissioner or Commissioner] before the date of search; or
any income of the specified previous year represented, either wholly or partly, by any
entry in respect of an expense recorded in the books of account or other documents maintained in
the normal course relating to the specified previous year which is found to be false and would not
have been found to be so had the search not been conducted.]