Quick Summary
1. Section 68 - Cash Credits Applicability: This section applies to individuals, firms, companies, or any other taxpayer. Provision: Where any sum is found credited in the books of the taxpayer, and the taxpayer fails to offer a satisfactory explanation regarding its nature and source, such amount
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FAQ :
Section 68 states that if any sum is credited in your books and you fail to provide a satisfactory explanation for its nature and source, it will be treated as income for that financial year.
Under Section 69, if you have made investments not recorded in your books and cannot satisfactorily explain the source of funds, the value of these investments will be treated as income.
Section 69A treats money, bullion, jewellery, or other valuable articles found in your possession, which are not recorded in your books, as income if you cannot provide a satisfactory explanation for their source.
Income deemed under these sections is taxed at higher rates, typically 60% (plus surcharge and cess), under Section 115BBE, with no deductions, allowances, or basic exemptions permitted.
Yes, these provisions do not apply if the credit pertains to a venture capital fund or venture capital company as defined in Section 10(23FB).
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