Archive · 29 Jan 2026
Government May Reduce Tax on Undisclosed Income
The Indian government is considering reducing the high tax rate on undisclosed income.
Right now, the tax rate is 78% plus a 10% penalty.
This rate was increased after demonetization in 2016 to discourage people from hiding money.
However, almost a decade later, the government might lower it back to 30% to make it fairer for taxpayers.
This change could happen in the upcoming budget.
The government may reduce the tax rate on undisclosed income from 78% to 30%.
The current rate includes a 10% penalty for undisclosed income.
The rate was increased post-demonetization to deter hiding money.
The higher rate was initially meant for the financial year 2016-17.
Taxpayers have been burdened by the high rate for nearly a decade.
- Who
- Indian Government
- What
- Potential reduction in tax rate on undisclosed income
- When
- Not specified
- Where
- India
- Why
- To alleviate the burden on taxpayers and restore balance
- Current Tax Rate
- 78%
- Proposed Tax Rate
- 30%
- Penalty Rate
- 10%
- Section of Income Tax Act
- 115BBE
- Initial Tax Rate
- 30%
- Financial Year of Rate Increase
- 2016-17
- Assessment Year of Rate Increase
- 2017-18
