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Concealment of Income-Section 272(1) of ITA- 2023 |
Penalty for Concealment of Income -Section 272(1) of ITA- 2023 :
Under sub-section (1) of Section 272 of the Income Tax Act, 2023, the Penalty for concealment of income has been substituted:
Under sub-section (1) of Section 272 of the Income Tax Act, 2023, the previous provision —
“The amount
of penalty shall be determined according to the following formula:
K = Undisclosed amount × 15%,
L = Undisclosed amount × 10% × M,
where,
**M = The number of assessment years between the year in which the concealment
of information occurred and the year in which such concealment was detected.
“has been substituted with the following formula and
expression:
“The amount
of penalty shall be determined according to the following formula:
K = Undisclosed amount × 10% × L,
where,
**L = The number of assessment years between the assessment year in which the
concealment of income occurred and the assessment year in which such
concealment is detected.”
Example 16
Mr. Arif
failed to declare a motor car purchased during the 2022–2023 assessment
year.
The case was reopened under Section 212 during the 2025–2026
assessment year.
Upon investigation, it was found that he had concealed income tax of Tk
50,000.
In this case, the penalty will be calculated as follows:
K = Undisclosed amount × 10% × L
· Undisclosed amount = Tk 50,000
· L = 4 years
Therefore,
K = 50,000 × 10% × 4 = Tk 20,000
If, however, the motor car was purchased and the concealment detected in the same assessment year (2025–2026), then the penalty would be:
K = 50,000 × 10% × 1 = Tk 5,000
Example 17
Ms. Razia
Banu purchased a 1,100 sq. ft. flat in Mohammadpur,
Dhaka, during the 2014–2015 assessment year.
She did not disclose this property in her wealth statement for
that year.
Upon investigation during the 2025–2026 assessment year, it was found that the undisclosed asset was acquired before the 2019–2020 assessment year, and thus deemed to have been acquired in the 2019–2020 assessment year (the sixth preceding year).
The undisclosed tax amount related to the flat purchase was Tk 200,000.
Accordingly, the penalty is calculated as:
K = Undisclosed amount × 10% × L
· Undisclosed amount = Tk 200,000
· L = 7 years
Therefore,
K = 200,000 × 10% × 7 = Tk 140,000
Summary:
Under the amended Section 272(1), the penalty for
concealment of income is now calculated at 10% of the
concealed amount per assessment year between the year of
concealment and the year of detection, instead of the
previous rate of 15% or mixed formula.