Topic:Interest on additional income tax ?
AnonymousPosted on 8th January,2021 05:15 PM
Mr. Ritesh Garg wants to make an application for previous year 1819 us 245C to thesettlement commission. Additional undisclosed income shown in application is Rs 65 for previous year 1819. Return was filed for previous year 1819 and Rs 35 00000was shown as income in the return and Rs 8 88375 was paid in the form of tax. Calculateadditional income tax payable by Mr. Piyush for submitting this application Ignoreinterest on additional income taxa 2329125b 2205378c 888375d 3217500. How to solve this?\r\n
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BMC Associates says Replied on 25th April,2026 10:15 AM
To solve this question, we need to calculate the additional tax payable on undisclosed income under Section 245C. 🔹 Step 1: Understand the Data Income already declared = ₹35,00,000 Tax already paid = ₹8,88,375 Additional undisclosed income = ₹65,00,000 👉 Total income after application = ₹35,00,000 + ₹65,00,000 = ₹1,00,00,000 🔹 Step 2: Calculate Tax on Total Income Tax on ₹1 crore (approx as per slab rates) ≈ ₹30,00,000 + cess 🔹 Step 3: Additional Tax Payable Additional tax = Tax on total income – Tax already paid 👉 ₹30,00,000 – ₹8,88,375 = ₹21,11,625 (approx) Closest option = (b) ₹22,05,378 ✅ 🔹 Final Answer: ✔️ Option (b) ₹22,05,378 🔹 Concept Tip: In Settlement Commission cases, additional tax is calculated on total revised income, and then tax already paid is deducted. Interest is ignored here as per the question. 🔹 SEO Add-on (for forums) For such complex tax calculations, many professionals consult chartered accountant firms in Gurgaon. An experienced chartered accountant Gurgaon or CA firm in Gurgaon can help in handling settlement commission cases, tax planning, and compliance. If you’re dealing with similar issues, a qualified CA in Gurgaon can guide you properly and avoid costly mistakes.
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