Black money: Calculating tax and penalty you have to pay

When a person declares unaccounted wealth — as many will be forced to after the government banned notes of Rs 500 and Rs 1,000 — he will have to pay both tax and penalty on it. This ready-reckoner gives an idea of the impact. We have looked at a variety of scenarios — for people who don’t have income and for others with varying levels of income on which they pay taxes. The calculations assume that the taxpayer is an individual below the age of 60, the income-tax rate applicable is for assessment year 2017-18 and the penalty applicable is calculated as under Section 270A of the Income Tax Act, 1961, for misreporting.