How Much Income Tax Need To Pay After 200% Tax Penalty

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The Black Money Removal scheme or Demonetization scheme has straightway target the people who have accumulated huge amount of cash, despite depositing in banks and paying due income tax on time. Even though Govt has come up with the bank deposit scheme, a deposit more than Rs 2.5 lakh will be scrutinized by IT department in future. And if found guilty, a 200% tax penalty may levied after paying the due tax on declared cash.

In such a scenario everyone is asking various questions like how much tax one need to pay for a cash deposit of Rs 5 lakh or 10 lakh or 15 lakh, 20 lakh etc. And also in case the penalty applied then what would be the amount. In this article I will simply share a tax penalty calculation for various deposit amount slab. I found this wonderful calculation in a whatsup group message and thought to share with my readers.

Tax calculation for black money with 200% Penalty

Cash Deposit of Rs 2 lakhs to 2.5 lakhs

No need to pay any tax here, this amount will be tax free.

Cash deposit up to 5 lakh

First 2.5 lakh – Exemption

  • 10% of remaining 2.5 Lakh = 25,000
  • Total Tax = 25,000
  • 200% penalty on tax  = 50,000

So, total tax payable after tax penalty = 75,000

Cash deposit up to 10 lakh or 1 Million

First 2.5 lakh – Exemption

  • 10% of remaining 2.5 Lakh = 25,000
  • 20% of remaining 5 Lakh = 1,00,000
  • Total Tax = 25,000 + 1,00,000 = 1,25,000
  • 200% penalty on tax  = 2,50,000

So, total tax payable after tax penalty = 3,75,000

Cash deposit up to 20 lakh or 2 Million

First 2.5 lakh – Exemption

  • 10% of remaining 2.5 Lakh = 25,000
  • 20% of remaining 5 Lakh = 1,00,000
  • 30% of remaining 10 Lakh = 3,00,000
  • Total Tax = 25,000 + 1,00,000 + 3,00,000 = 4,25,000
  • 200% penalty on tax  = 8,50,000

So, total tax payable after tax penalty = 12, 75,000

Cash deposit up to 30 lakh or 3 Million

First 2.5 lakh – Exemption

  • 10% of remaining 2.5 Lakh = 25,000
  • 20% of remaining 5 Lakh = 1,00,000
  • 30% of remaining 20 lakh = 6,00,000
  • Total Tax = 25,000 + 1,00,000 + 6,00,000 = 7,25,000
  • 200% penalty on tax  = 14,50,000

So, total tax payable after tax penalty = 21,75,000

Cash deposit up to 40 lakh or 4 Million

First 2.5 lakh – Exemption

  • 10% of remaining 2.5 Lakh = 25,000
  • 20% of remaining 5 Lakh = 1,00,000
  • 30% of remaining 30 lakh = 9,00,000
  • Total Tax = 25,000 + 1,00,000 + 9,00,000 = 10,25,000
  • 200% penalty on tax  = 20,50,000

So, total tax payable after tax penalty = 30,75,000

Cash deposit up to 50 lakh or 5 million

First 2.5 lakh – Exemption

  • 10% of remaining 2.5 Lakh = 25,000
  • 20% of remaining 5 Lakh = 1,00,000
  • 30% of remaining 40 lakh = 12,00,000
  • Total Tax = 25,000 + 1,00,000 + 12,00,000 = 13,25,000
  • 200% penalty on tax  = 26,50,000

So, total tax payable after tax penalty = 39,75,000

Cash deposit up to 100 lakh or 1 crore

First 2.5 lakh – Exemption

  • 10% of remaining 2.5 Lakh = 25,000
  • 20% of remaining 5 Lakh = 1,00,000
  • 30% of remaining 90 lakh = 27,00,000
  • Total Tax = 25,000 + 1,00,000 + 27,00,000 = 28,25,000
  • 200% penalty on tax  = 56,50,000

So, total tax payable after tax penalty = 84,75,000

So, this may not be 100% accurate information about the income tax calculation considering the penalty but one will get a rough idea. There will be many more things need to considered like existing taxable amount and then this will be on top of that etc. I think Income tax department will do it later on based on priority if required to find out the penalty of doubtful & high cash deposits.

For time being, this tax penalty calculation will give an idea about how much tax one need to pay with penalty in case you are planning to deposit a high amount of cash.

Disclaimer: I am telling again that this figures are all indicative and taken from Whatsup group only. Consider it as example purpose only to improve your knowledge on how things could be.

Would like to know what you think on this extra 200% penalty rule on cash deposit more than 2.5 lakh? Just write a simple comment below and share your thoughts. Thanks for reading & sharing this article.

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