Section 271AAB of ITA, 1961 : Section 271Aab: Penalty Where Search Has Been Initiated

Explanation using Example

Imagine a business owner, Mr. Sharma, who has not declared a certain amount of income earned in the previous financial year. The Income Tax Department conducts a search at his premises on 15th September 2015 and discovers Rs. 50 lakhs of undisclosed income in the form of cash and false entries in his books of account.

Under Section 271AAB, Mr. Sharma now faces potential penalties for his undisclosed income. If he admits to the undisclosed income during the search, provides an explanation for it, and pays the due tax and interest before the due date of f...

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