In an income tax concealment case, the Ahmedabad bench ruled that a penalty can be issued without a limb amount. The tax penalty is a burden to the taxpayers. Tax Revenue plays a prominent role in economic growth. Direct tax is part of tax revenue. It has a relationship with demand, inflation and supply. The deduction for the insurance, loans and equity-linked mutual funds is to encourage the financial services. The tax deduction attracts organisations and individuals. The structure of Income tax improves the stability. Indirect tax thrust the companies to reduce the cost of production and control the selling price. The cost of production reduces the tax payment. Selling prices improves the profit and market competition.

The Mumbai Bench of the Income Tax Tribunal said in the latest news that two hundred per cent of the penalty is in cases where the department specifies the misreporting. Some of the recent penalty cases that make a point to the general public are as follows: Golden Peace Hotels and Resorts, Sahara India Financial Corporation Ltd, Vasan Healthcare P Ltd, Sugar Exim Corporation Ltd, and Ashok Kumar Maneklal Parikh. The IPO market rose by 63 companies in 2021. In 2022, the Indian stock exchange is in third position in the world market due to the IPO listings. The 2023 union budget wants to enhance stability, ease of doing business and compliance framework. The Union budget does not implement changes to the corporate tax structure. The penalties create awareness for the taxpayers. Here is the set of penalty listings from Income tax departments for the various issues.

Different types of penalties:

Taxpayers are requested to pay a penalty. This penalty is to correct the tax payment. A direct relationship exists between tax revenue and GDP growth, inflation, infrastructure and welfare schemes. The following points summarise the tax penalties from the Income tax department.

Final Words:

Developed countries provide medical facilities and social security to the citizens. The developed countries help the citizens to overcome unemployment, retirement life issues and other financial problems. In India, the government manages the education and health care for the poor people. The tax rates are becoming less in India. In the eighties, the tax rates were around 97.75 per cent. Now, it is reduced. Tax is the price that every individual pays for civilisation. The report of Credit Suisse Global Wealth says that India has around 1815 numbers of high net-worth individuals. It reflects the inequality. The Indian Government provide quality education, health care system and welfare plans. The tax revenue is the income source of the Government. Tax collection brings equality and economic development.

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