Calculation for Compounding Charges in the case of a Firm - Income Tax - F.No.285/86/90-IT(Inv)/53

F. No. 285/86/90-IT(Inv)/53 Dated 16-05-1996 [Regarding calculation for Compounding Charges in the case of a Firm] Income concealed X Less: Firm tax and surcharges at maximum (A) Marginal rate of tax.... Allocable profit Y (-) Tax on allocable income in the hands of partners (B) With surcharge at maximum marginal rate.... Post tax profit for partners and firm (Y-B).... (Z) Total tax sought to be evaded (A+B)=(C).... (C) Add: 10% consolidated establishment expenses.... (0.1)x(C) Total compounding Charges (1.1)x(C) Recoverable for first offence.